Vivendi ((VIVHY)) has held its Q4 earnings call. Read on for the main highlights of the call.
Vivendi’s recent earnings call presented a mixed sentiment, reflecting both achievements and challenges. The company successfully executed spin-off operations and saw a positive stock performance. However, it faced declining revenues, particularly in Gameloft, and a significant net loss due to the spin-off. While certain segments showed notable achievements, the overall financial performance exhibited some negative trends.
Vivendi Stock Performance
Vivendi’s stock has shown impressive growth, rising by 15% since the beginning of the year. This performance has outpaced the SBF120 index, indicating strong investor confidence and market positioning.
Successful Spin-off
The company completed the spin-off and respective listings of Group Canal+, Havas, and Louis Hachette Group on a tight schedule, receiving overwhelming approval of 97.5% at the Extraordinary General Meeting. This strategic move is expected to streamline operations and enhance focus on core business areas.
Positive EBITDA Growth for Gameloft
Despite a 5.7% decrease in revenue, Gameloft managed to increase its EBITDA from €5 million to €8 million. This growth highlights effective cost management strategies, allowing the segment to maintain profitability amidst revenue challenges.
Robust Performance of Havas and Louis Hachette Group
Havas closed a historic year, while the Louis Hachette Group achieved very strong results, combining Lagardère and Prisma Media. These segments have shown resilience and strong market performance, contributing positively to Vivendi’s overall portfolio.
Dividend Proposal
Vivendi has proposed a dividend of €0.04 per share, representing a yield of 1.5%. This proposal is subject to shareholder approval and reflects the company’s commitment to returning value to its investors.
Overall Revenue and EBITDA Decline
The company reported revenue of €297 million, with an EBITDA of minus 1%. The net earnings group shares were negatively impacted by €6 billion due to the asset split, indicating financial challenges that the company needs to address.
Gameloft Revenue Decline
Gameloft experienced a revenue decline of 5.7%, from €311 million in 2023 to €293 million in 2024. This decrease highlights the competitive pressures and market challenges faced by the gaming segment.
Net Loss Impacted by Spin-off
Vivendi’s net income group share showed a loss of €6.4 billion, primarily due to the fair value adjustment of the distributed assets. This significant loss underscores the financial impact of the spin-off operations.
Corporate Cost and Operational Challenges
The corporate cost was reported at €126 million, with plans to reduce operational expenses further. However, specific targets for 2025 were not disclosed, leaving some uncertainty about future cost management strategies.
Telecom Italia Stake
Vivendi plans to sell its stake in Telecom Italia but is waiting for a favorable market position to exit. This strategic decision aligns with the company’s focus on optimizing its investment portfolio.
Forward-Looking Guidance
Vivendi’s guidance for the fiscal year 2024 highlighted key metrics, including a portfolio valued at €7.1 billion and a net asset value of €4.8 billion. The company aims to reduce corporate costs and strategically sell its stake in Telecom Italia. Continued investment in Gameloft for organic growth and potential acquisitions was emphasized, alongside a proposed dividend of €0.04 per share.
In conclusion, Vivendi’s earnings call reflected a mixed sentiment with both positive achievements and financial challenges. The successful spin-off operations and stock performance were overshadowed by declining revenues and a significant net loss. However, the company’s strategic initiatives and future guidance indicate a focus on growth and value creation for shareholders.