This press release contains unaudited consolidated revenues, established under IFRS and approved by the Management Board on April 22, 2022. These revenues do not include those of Universal Music Group (UMG), which, due to the distribution of 60% of its share capital in September 2021, has been deconsolidated, leading to the adjustment of previously reported figures.
For the first quarter of 2022, Vivendi’s revenues were EUR2,377 million, compared to EUR2,095 million for the first quarter of 2021. This increase of 13.4% is mainly due to the growth of Canal+ Group (+EUR89 million), Havas Group (+EUR89 million) and Vivendi Village (+EUR20 million). It also included the contribution of Prisma Media (+EUR73 million), consolidated since June 1, 2021.
At constant currency and perimeter(1) , Vivendi’s revenues grew by 7.9% compared to the first quarter of 2021. This increase is mainly due to the growth of Canal+ Group (+6.0%), as well as the strong increase of Havas Group (+11.3%), Gameloft (+10.0%) and Vivendi Village (x3.8).
Public tender offer on Lagardère
Vivendi’s public tender offer for Lagardère’s shares was opened on April 14, 2022, for an initial period of 25 trading days, i.e., until May 20, 2022. On February 21, 2022, Vivendi’s Management Board approved the terms of its public tender offer and filed its draft tender offer document with the French securities regulator (Autorité des marchés financiers or “AMF”), which declared it compliant on April 12, 2022.
Vivendi is proposing to Lagardère shareholders:
-- Either on a principal basis: to sell their Lagardère shares at a unit price of EUR25.50 (with dividend attached); or -- On a subsidiary basis: to benefit, for each Lagardère share tendered to this subsidiary leg and held until the closing date (inclusive) of the offer, which may be reopened, subject to a proportional reduction (see below), from a right to sell such share to Vivendi at a unit price of EUR24.10 until December 15, 2023 (inclusive).
If the number of shares tendered to the principal offer during the first offer period is insufficient to reach the validity threshold, Vivendi will acquire in cash at the price of the principal offer the number of shares tendered to the subsidiary offer necessary to reach 51% of the share capital of Lagardère at the closing date of the first offer period.
If this offer is successful and the required regulatory approvals are obtained, Vivendi would like Arnaud Lagardère to remain as Chairman and Chief Executive Officer of Lagardère and intends to continue to rely on the skills of its management team.
Vivendi does not intend to apply to the AMF for a squeeze-out of Lagardère’s shares or to request the delisting of Lagardère’s shares from Euronext Paris.
Comments on the Businesses
For the first quarter of 2022, Canal+ Group’s revenues amounted to EUR1,446 million, up by 6.5% compared to the first quarter of 2021 (+6.0% at constant currency and perimeter). This increase is driven by all the group’s activities.
Television in mainland France recorded strong revenues growth, with an increase of 6.5% at constant currency and perimeter compared with the first quarter of 2021.
Revenue from international operations increased by 6.2% at constant currency and perimeter compared to the first quarter of 2021, thanks again to a significant increase in the number of subscribers.
Studiocanal’s revenues increased by 4.5% in one year, due in particular to several cinema successes, such as Superwho?, Waiting for Bojangles and Goliath, and the strong performances of the catalogue.
During the first quarter of 2022, Canal+ Group strengthened its content offerings and continued its international development.
On January 24, 2022, Canal+ signed the new media chronology. Canal+ is now entitled to broadcast movies in France six months after their theatrical release, compared to twelve months in 2018.
On February 15, 2022, Canal+ Group and ViacomCBS announced a long-term strategic partnership based on two pillars:
– The distribution of Paramount+ by the end of the year and nine ViacomCBS channels by Canal+ Group, in France and Switzerland. Canal+ Group will be the only market player in France able to integrate Paramount+ into its commercial offers (in “hard bundle”); and
– The acquisition of exclusive premium content for Canal+ Group channels and services, covering more than 30 territories. Canal+ Group will notably air Paramount films in exclusive premiere on Canal+ in France and Switzerland six months after their theatrical release.
On March 15, 2022, Canal+ Group entered the Austrian market by launching a streaming platform in partnership with A1 Telekom Austria.
On March 17, 2022, Canal+ Group completed the acquisition of 70% of SPI International, a global media group operating 42 television channels and multiple digital products in more than 60 countries.
On March 29, 2022, the enhanced Arte.tv offer was added to the Canal+ offer in France.
Finally, on April 6, 2022, Canal+ Group and Formula 1(R) announced a new agreement for the exclusive broadcasting of the Formula 1(R) World Championship on Canal+ until 2029, which completes the motorsport offer with the MotoGP(TM) World Championship until 2029 and the WRC (World Rally Championship) until 2030.
Havas Group made an excellent start to the year with double-digit organic growth. For the first quarter of 2022, revenues were EUR591 million, up by 17.7% compared to the first quarter of 2021. Net revenues(1) were EUR564 million, up by 18.0% compared to the first quarter of 2021, broken down as follows: organic growth of +11.4% (compared to organic growth of -0.8% in the first quarter of 2021), a +4.4% currency effect and a +2.2% contribution from acquisitions.
This excellent operating performance stems from the strong commercial momentum achieved in recent quarters, boosted by the launch of innovative new offerings (notably Havas CX and Havas Market).
All the geographical regions reported strong organic growths, with positive contributions from all divisions: Creative, Media and Healthcare communication. Once again, Europe and North America were the biggest contributors, with solid organic growth (+12.4% and +9.0%, respectively). Both Asia-Pacific (+9.3%) and Latin America (+22.3%) continued to report highly satisfactory performances.
During the first quarter of 2022, Havas Group accelerated its acquisition of majority interests with five targeted operations: Tinkle (Spain and Portugal), Inviqa (United Kingdom and Germany), Search Laboratory (United Kingdom and United States), Frontier Australia (Australia) and Front Networks (China).
For the first quarter of 2022, Editis’ revenues were EUR160 million, a decrease of 1.7% at constant currency and perimeter compared to the same period in 2021. This change should be viewed in the context of a market that is down by 1.0% compared to the same period in 2021(2) . This reversal of dynamics is to be put into perspective with last year’s unprecedented growth; the 2022 market increased by 19.3%(4) compared to 2019.
At Editis, the Tourism and Comics segments outperformed the market at the end of March 2022. In the Comics segment, Editis created its 51(st) publishing house headed by the French businessman Mourad Boudjellal, and its 52(nd) publishing house, Black River.
Moreover, in General Literature, Editis can be proud of the success of several titles, including Joël Dicker’s new book L’affaire Alaska Sanders, which ranked third in the GFK Top(4) , the winner of the 2021 Prix Goncourt La plus secrète mémoire des hommes by Mohamed Mbougar Sarr at Philippe Rey which continues to perform well among the new 2022 titles, and Paris-Briançon by Philippe Besson, which was among the Top 10 bestsellers at the end of March 2022(4) .
For the first quarter of 2022, Prisma Media’s revenues were EUR73 million, up by 2.2% compared to the same period in 2021 (pro forma(3) ). Digital revenues reached a record, up by more than 23% compared to the same period in 2021 and representing more than 30% of Prisma Media’s revenues.
Gala celebrated its 1,500(th) publication in March 2022 with an exclusive interview with Mylène Farmer; the issue reached a record circulation of nearly 140,000 copies sold. Télé-Loisirs strengthened its SVoD offering with the goal of becoming the reference website on the topic. The Télé 2 semaines brand accelerated its digital development with editorial content focused on popular TV shows (such as Koh Lanta, Mask Singer, The Voice and L’Amour est dans le pré) on its TV program website.
Prisma Media brands retained their leading positions in terms of digital audiences: Télé-Loisirs is No. 1 in the Entertainment segment with an average monthly 22.5 million unique visitors (UVs) and Capital is No. 1 in the Economic segment with 10.2 million UVs.
Prisma Media’s social media audiences continued to grow compared to the first quarter of 2021, with the number of followers increasing by 11%. The Gala brand remains the European media leader on Tiktok, with the number of followers up by more than 32% compared to 2021.
For the first quarter of 2022, Gameloft’s revenues reached EUR61 million, up by 10.8% compared to the same period in 2021 (+10.0% at constant currency and perimeter). The gross margin(4) reached EUR44 million, up by 19.1% compared to the same period in 2021.
This strong growth was mainly driven by the success of Apple Arcade games, the excellent performance of Gameloft for brands (advertising platforms) up by 40.7% and the strong rebound of Gameloft Business Solutions (telecom operator and handset manufacturer platforms) with an increase of 20.3%.
Asphalt 9: Legends, Disney Magic Kingdoms, Dragon Mania Legends, March of Empires, and Sniper Champions generated 47% of Gameloft’s total revenues and were the five-best-selling-games in the first quarter of 2022.
For the first quarter of 2022, Vivendi Village’s revenues were EUR27 million compared to EUR7 million for the first quarter of 2021 and, more comparatively, to EUR22 million for the first quarter of 2020.
This growth was mainly driven by the ticketing activities united under the See Tickets brand, which were particularly dynamic in the United Kingdom and the United States during the period, as well as in Spain, which enjoyed a record month of March. Ticket sales for summer festivals in France and the United Kingdom continued to be very satisfactory and L’Olympia is back on track with 55 performances in the first quarter of 2022.
For the first quarter of 2022, New Initiatives, which brings together Dailymotion and the GVA entities, recorded revenues of EUR25 million, an increase of 41.1% at constant currency and perimeter.
This significant increase results both from the increase of Dailymotion’s audience and consequently of its advertising revenues and from the growth of GVA’s fiber subscriber base in Africa, which now covers seven countries.
Shareholder’s Annual General Meeting
The Combined General Shareholder’s Annual Meeting is being held today at the Olympia in Paris at 10:00 am. It will be broadcast live on the group’s website.
Since 2014, Vivendi has built a world-class content, media and communications group. The Group owns leading, strongly complementary assets in television and movies (Canal+ Group), communications (Havas Group), publishing (Editis), magazines (Prisma Media), video games (Gameloft), live entertainment and ticketing (Vivendi Village). It also owns a global digital content distribution platform (Dailymotion). Vivendi’s various businesses cohesively work together as an integrated industrial group to create greater value. Vivendi is committed to the environment and has set the goal of contributing to net zero carbon worldwide by adopting an approach in line with the Paris Agreements. In addition, the Group is helping to build more open, inclusive and responsible societies by supporting diverse and inventive creative works, promoting broader access to culture, education and its businesses, and by increasing awareness of 21(st) -century challenges and opportunities. www.vivendi.com.
Cautionary Note Regarding Forward-Looking Statements. This press release contains forward-looking statements with respect to Vivendi’s financial condition, results of operations, business, strategy, plans and outlook, including the impact of certain transactions and the payment of dividends and distributions, as well as share repurchases. Although Vivendi believes that such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including, but not limited to, the risks related to antitrust and other regulatory approvals as well as any other approvals which may be required in connection with certain transactions and the risks described in the documents of the Group filed by Vivendi with the Autorité des Marchés Financiers (the French securities regulator), which are also available in English on Vivendi’s website (www.vivendi.com). Investors and security holders may obtain a free copy of documents filed by Vivendi with the Autorité des Marchés Financiers at www.amf-france.org, or directly from Vivendi. Accordingly, we caution readers against relying on such forward-looking statements. These forward-looking statements are made as of the date of this press release. Vivendi disclaims any intention or obligation to provide, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Unsponsored ADRs. Vivendi does not sponsor an American Depositary Receipt (ADR) facility in respect of its shares. Any ADR facility currently in existence is “unsponsored” and has no ties whatsoever to Vivendi. Vivendi disclaims any liability in respect of any such facility.
In 2021, notwithstanding the uncertainties created by the COVID-19 pandemic and although its impacts were more significant in certain countries or on certain businesses than others, Vivendi showed resilience in adapting its business activities to continue to best serve and entertain its customers, while reducing costs to preserve its margins. The business activities showed good resilience, in particular pay television services, as well as Havas Group and Editis. However, as expected, the pandemic’s effects continued to slow down certain businesses such as Vivendi Village (in particular live entertainment).
Vivendi continually monitors the current and potential consequences of the health crisis. To date, it is difficult to determine how it will impact Vivendi’s results in 2022. Nevertheless, the Group remains confident in the resilience of its main businesses. It continues to make every effort to ensure the continuity of its business activities, as well as to best serve and entertain its customers and audiences while complying with the health guidelines of authorities in each country where it operates.
Russia’s invasion of Ukraine in February 2022 is having a significant impact on the financial markets and the prices of certain commodities and will have repercussions on the entire world economy. Vivendi is mainly present in Ukraine through Gameloft, which is doing everything possible to support its teams in the country and limit the impact of the events on the delivery of its content. The Group also has communications activities in Ukraine through companies affiliated with Havas Group and is fully mobilized to help them as much as possible. At this time, it is not possible for Vivendi to assess the indirect consequences that the Ukraine crisis could have on its business activities.
APPENDIX I VIVENDI REVENUES BY BUSINESS SEGMENT (IFRS, unaudited) Three months ended March 31, % Change at constant % Change currency at and (in millions of constant perimeter euros) 2022 2021 % Change currency (a) Revenues Canal+ Group 1,446 1,357 +6.5% +6.4% +6.0% Havas Group 591 502 +17.7% +13.4% +11.3% Editis 160 163 -1.7% -1.7% -1.7% Prisma Media 73 na na na +2.2% Gameloft 61 55 +10.8% +10.0% +10.0% Vivendi Village 27 7 x 3.8 x 3.8 x 3.8 New Initiatives 25 17 +41.1% +41.1% +41.1% Other (b) (6 ) (6 ) - - - Total Vivendi 2,377 2,095 +13.4% +12.3% +7.9%
na: not applicable.
1. Constant perimeter notably reflects the impacts of Prisma Media consolidated since June 1, 2021. 2. As from January 1, 2022, this new operating segment includes the Elimination of intersegment transactions and CanalOlympia, previously part of Vivendi Village (2021 data has been restated). APPENDIX II VIVENDI DETAIL OF REVENUES BY BUSINESS SEGMENT (IFRS, unaudited) Canal+ Group Three months ended March 31, % Change at constant (in millions of currency and euros) 2022 2021 % Change perimeter TV - International 574 537 +6.9% +6.2% TV -- Mainland France (a) 788 739 +6.5% +6.5% Studiocanal 84 81 +4.5% - Revenues 1,446 1,357 +6.5% +6.0%
a. Relates to pay-TV services and free-to-air channels (C8, CStar et CNews) in Mainland France.
Three months ended March 31, % Change at constant (in millions of currency and euros) 2022 2021 % Change perimeter Revenues 591 502 +17.7% +11.3% Net revenues (a) 564 478 +18.0% +11.4% Net revenues by geographic area Europe 276 234 +18.0% +12.4% North America 218 186 +16.9% +9.0% Asia-Pacific and Africa 45 37 +22.7% +9.3% Latin America 25 21 +21.2% +22.3% 564 478 +18.0% +11.4%
a. Net revenues, a non-GAAP measure, correspond to revenues less pass-through costs rebilled to customers.
Three months ended March 31, % Change at constant (in millions of currency and euros) 2022 2021 % Change perimeter Literature 75 74 +1.8% +1.8% Education and Reference 22 22 +0.8% +0.8% Diffusion and Distribution 63 67 -6.3% -6.3% Revenues 160 163 -1.7% -1.7% APPENDIX III VIVENDI SCOPE OF CONSOLIDATION AND CURRENCY IMPACTS Q1 2021 Q1 2022
organic +1,5% +7,9% Consolidation scope impact +0,4pt +4,4pts at constant currency rate +1,9% +12,3% FX impact -2,3pts +1,1pt actual -0,4% +13,4%
Changes in currencies
Average rate over the period Q1 2021 Q1 2022
YoY USD: 1,217 1,134 -6,8% EUR vs. GBP: 0,886 0,839 -5,3% PLN: 4,486 4,559 +1,6%
(1) Constant perimeter notably reflects the impact of Prisma Media consolidated since June 1, 2021.
(2) Including the elimination of inter-segment transactions.
(3) Net revenues correspond to Havas Group revenues after deduction of costs rebilled to clients.
(4) Source: GFK data, as of March 27, 2022, based on revenues.
(5) Vivendi has fully consolidated Prisma Media since June 1, 2021.
(6) Gross margin corresponds to Gameloft’s revenues after deduction of costs of sales.
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SOURCE: Vivendi Copyright Business Wire 2022