(AOF) – Vivendi has unveiled revenue of 7.451 billion euros for the first nine months of 2022, up 8.5%. This increase is largely due to the performance of Havas Group (+284 million euros), the rebound of Vivendi Village (+109 million euros compared to 2021 impacted by the effects of the health crisis in particular on performing arts) as well as the growth of the Canal + group (+€43 million).
At constant exchange rates and perimeter, Vivendi’s revenue increased by 3.7% compared to the first nine months of 2021.
Yannick Bolloré, Chairman of the Supervisory Board, and Arnaud de Puyfontaine, Chairman of the Management Board of Vivendi, declared: “Over the first nine months of 2022, Vivendi saw an increase in its revenue of +8.5% and +3.7% on an organic basis The overall performance of our Group in the third quarter was largely driven by Havas Group, which maintained a strong commercial momentum thanks to the commitment of its teams, great operational agility and the continued development of innovative solutions for its customers”.
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Key points
– Holding of 3 divisions, culture with Editis, cultural entertainment with Canal Group, DailyMotion and Gameloft, and media with Havas Group and Prisma Media;
– Revenues of €9.6 billion generated by the Canal + group (60%), by Havas (24%) and Editis (9%);
– “Creation Unlimited” business model aimed at becoming the world’s No. 1 in content, media and communication by accelerating business growth, investing in the long term, creating synergies between businesses and enhancing catalogs;
– Capital controlled at 27.03% and 29.73% of the voting rights by the Bolloré Group, the 13-member supervisory board being chaired by Yannick Bolloré;
– Debt-free balance sheet with net cash of €348m, equity of €19.2bn.
Challenges
– Strategy based on the development of intellectual properties and content through franchises, “live” (festivals), on the penetration of the African, Indian and Chinese markets and on online distribution via Dailymotion;
– Good visibility of the activity, subscriptions representing almost 2/3 of revenues;
– Innovation strategy based on the emergence of local creators, on the offer of creation platforms and incubators in several countries and on investment in innovative companies;
– “Creation for the future” environmental strategy: objective of carbon neutrality with a 30% reduction from 2025 /circular economy, from eco-design;
– Penetration of China after the sale of 10% of UMG to Tencent with the acquisition of Front Network;
– Settlement of the conflict with Mediaset (nearly 29% of the capital but weak voting rights) and Fininvest.
French players well positioned in audiovisual production
Among the independent players, the Frenchman Banijay is the world leader with an expected turnover of 3 billion euros in 2022 in a market which represents 100 billion in revenue. Mediawan (backed by the KKR fund), whose turnover amounts to 1 billion euros, is the other main French player in the sector. The market is still very fragmented because according to the European Audiovisual Observatory, the top twenty production groups were responsible for only 38% of titles created in 2020. However, experts believe that the sector has entered a phase consolidation. Thus Banijay’s stock market listing aims to enable it to better participate in this movement.