Vivendi Universal Reports Solid Q1 Earnings

Businesswire: Vivendi Universal, the French media group, beat analysts' forecasts of first-quarter operating profit yesterday stating that its first-quarter profit tripled - boosted by gains at its phone services units and as music and video-games returned to profitability following massive job cuts last year. Net income rose to 502 million euros ($634 million or 44 cents a share) from 166 million euros (14 cents a share) a year earlier and all 5 of Vivendi's units were profitable in the quarter...

Meanwhile, Universal Music Group has claimed a 4% revenue contribution from digital download sales and continues to outperform the market, enjoying a healthy 25% global market share. Revenues were no doubt lifted by hits from artists like Mariah Carey, 50 Cent and Scissor Sisters - all helping to lift earnings from operations to 36 million euros (45.5 million) from a shortfall of 4 million euros (5.1 million) a year earlier.

The encouraging results underscore a dramatic turnaround at Paris-based Vivendi, which came close to collapse three years ago. Since then, Chairman Jean-Rene Fourtou has sold off businesses to lower debt and lift earnings...

Related:
--Music Sales Buoy Vivendi Net in Quarter
--Vivendi First-Quarter Profit Triples on Music, Phones