Vivendi 2018 Net Profit Plunged on Telecom Italia Writedown

   By Olivia Bugault

Vivendi SA's (VIV.FR) net profit plunged last year, a decline that the company attributed mainly to a steep writedown in the value of shares in Telecom Italia SpA (TIT.MI), in which Vivendi is a major shareholder.

Net profit for the year stood at 127 million euros ($143.3 million) compared with EUR1.23 billion for 2017, the French media group said on Thursday. It blamed the drop on the EUR1.07 billion writedown of the value of the Telecom Italia shares.

Revenue rose 11% to EUR13.93 billion, partly driven by the consolidation of Havas, it said. Vivendi's most profitable subsidiary Universal Music Group revenue increased 10% to EUR6.02 billion, at constant currency and perimeter, while Canal+ Group revenue was stable at EUR5.17 billion.

Vivendi said earnings before interest and taxes--a measure of profitability closely watched by analysts--was EUR1.18 billion compared with EUR1.04 billion during the year-earlier period.

The company is "confident is the evolution of its main businesses in 2019," and expects Canal+ Group profitability to keep growing, it said.

Vivendi proposed a dividend of EUR0.50 a share for 2018, compared with EUR0.45 a year earlier.

The sale of 50% of Universal Music Group is moving forward as Universal's corporate structure reorganization was completed at the end of 2018, Vivendi said.

Write to Olivia Bugault at olivia.bugault@dowjones.com

(END) Dow Jones Newswires

February 14, 2019 12:33 ET (17:33 GMT)

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