Vivendi reiterrated a long term commitment to “create significant value” for the customers, employees and shareholders of Telecom Italia, as it revealed Q1 2017 earnings.
The media company’s comments come shortly after the candidates it submitted for the board of Telecom Italia picked up support at a recent shareholder meeting.
Telecom Italia’s newly-constituted board is made up of 15 members: ten independents; three representing Vivendi; and Telecom Italia’s chairman and CEO, appointed to “ensure the continuity of management”.
Vivendi seperately announced an intention to acquire Groupe Bollore’s 60 per cent stake in Havas to create a “leading world-class content, media and communications group”. Groupe Bollore is also the largest single shareholder in Vivendi.
On a group level, Vivendi reported a profit of €101 million, down 88.3 per cent year-on-year, on revenue of €2.7 billion, up 6.9 per cent. It noted an “excellent performance” from Universal Music Group, while its Canal+ revenue declined due to falling pay TV operations in France and lower studio sales.
Its Gameloft unit also recorded its “all-time second best quarter”.
The company explained the drop in profit by noting its Q1 2016 profit was boosted by factors including the reversal of a reserve created in relation to a lawsuit, and a gain on the sale of its remaining stake in Activision Blizzard, leading to a tough annual comparison.
Adjusted net income, which it described as “a better representation of the group’s performance”, increased 57.2 per cent to €155 million.