Vivendi: revenues of €7,451 million for the first nine months of 2022, up +8.5 % (+3.7% in organic terms¹)

PARIS--(BUSINESS WIRE)--Regulatory News:

Yannick Bolloré, Chairman of the Supervisory Board, and Arnaud de Puyfontaine, Chairman of the Management Board and CEO, jointly commented: “For the first nine months of 2022, Vivendi (Paris:VIV) reported revenue growth of 8.5% and organic revenue growth of 3.7%.

Our Group's overall performance in the third quarter was largely driven by Havas Group, which has maintained a strong commercial momentum thanks to the commitment of its people, its great operational agility, and the continued development of innovative solutions for its clients.

Canal+ Group's business is being driven more by its international operations. After the acquisition of M7 and SPI International, and strong growth in Africa, subscribers outside France now represent more than 60% of the group’s total customer base. In addition, in line with its internationalization strategy, Canal+ Group crossed the 25% level of ownership interest in MultiChoice in September. Studiocanal continues to develop, and we are very proud to be the co-producers of the film “November”, which is a great success, with more than one million admissions in just two weeks in France.

We would like to recognize Gameloft’s impressive improvement over the third quarter. The success of the Disney Dreamlight Valley game released in September perfectly illustrates its new strategy of developing games for all platforms that it has been implementing for the past three years and which is now bearing fruit.

Although the entire publishing sector is down this year in France, Editis' performance is clearly better than the reference year pre-covid of 2019.

Prisma Media is very well integrated into our Group. It will shortly launch the French version of Harper's Bazaar, a legendary fashion and style brand, and confirmed once again the company's leadership position in digital in France.

In addition, we are actively working to obtain the necessary authorization from the European Commission to finalize the Lagardère group transaction.

All these performances confirm the validity of the Group's strategy, based on transformation, international development, and the integration of our different businesses. Thanks to the diversity and complementarity of its businesses, their ability to anticipate and adapt, its talent and the stability of its shareholding, Vivendi is looking forward to the remainder of the year with confidence, despite the macroeconomic and geopolitical turbulence.”

For the first nine months of 2022³, Vivendi’s revenues were €7,451 million, compared to €6,870 million for the same period in 2021. This increase of 8.5% was mainly due to the performance of Havas Group (+€284 million), the recovery of Vivendi Village (+€109 million compared to 2021, which was impacted by the effects of the pandemic, particularly on live entertainment), as well as the growth of Canal+ Group (+€43 million). It also included the contribution of Prisma Media (+€134 million), consolidated over the full nine months of 2022, compared to only four months in the first nine months of 2021 (since June 1, 2021).

At constant currency and perimeter¹, Vivendi’s revenues grew by 3.7% compared to the first nine months of 2021. This increase was mainly due to the performance of Havas Group (+8.7%) and the recovery of Vivendi Village (x2.7 compared to 2021, which was impacted by the effects of the pandemic, particularly on live entertainment).

For the third quarter of 2022, Vivendi’s revenues were €2,578 million, compared to €2,476 million for the same period in 2021. This increase of 4.1% was mainly due to the performance of Havas Group (+€75 million) and the recovery of Vivendi Village (+€56 million) and Gameloft (+€31 million), partially offset by the slowdown at Canal+ Group (-€48 million).

At constant currency and perimeter, Vivendi’s revenues slightly grew (+0.6%) compared to the third quarter of 2021. The performance of Havas Group (+3.2%), as well as the recovery of Vivendi Village (x2.5) and Gameloft (+45.4%), were partially offset by the slowdown at Canal+ Group (-4.9%).

Liquidity

Vivendi has significant financing capacity. As of September 30, 2022, €2.7 billion of the Group’s committed credit facilities were available.

In addition, in the third quarter of 2022, share buybacks totaled €25 million. Vivendi currently holds directly 83.9 million of its own shares, representing 7.6% of its share capital.

Comments on the Businesses

Film and audiovisual: Canal+ Group

For the first nine months of 2022, Canal+ Group’s revenues were €4,292 million, an increase of 1.0% compared to the same period in 2021 (-0.2% at constant currency and perimeter).

Revenues from television operations in mainland France were €2,319 million, up by 1.3% at constant currency and perimeter compared to the first nine months of 2021. In addition, growth in the subscriber base continued.

Canal+ Group is continuing to develop its international activities. Driven by an increase in the subscriber base, revenues from international operations increased by 6.3%, rising from €1,633 million for the first nine months of 2021 to €1,736 million for the same period in 2022 (+3.6% at constant currency and perimeter).

Studiocanal’s revenues decreased by 29.6% at constant currency and perimeter. The first nine months of 2022 were marked by record-breaking performances from the catalogue and theatrical releases (including Rise, Superwho?, Goliath and Waiting for Bojangles), despite a still challenging market. The drop in revenues was entirely attributable to the fact that the comparative year of 2021 was exceptional for TV series (e.g., Stay Close, Now and Then, Un Asunto Privado) and that the releases of some major films were postponed to 2023. This decrease in revenues had no impact on EBITA.

During the third quarter of 2022, Canal+ Group strengthened its content offerings and continued its international development with, in particular:

• The signing of two exclusive agreements with Sony Pictures Entertainment and NBCUniversal, which will allow Canal+ to offer its subscribers exclusive access to these studios’ films six months after their theatrical release in France. As a result, Canal+ Group can now count all five major American studios among its partners: Walt Disney Pictures, Warner Bros. Pictures, Paramount Pictures, and now Sony Pictures Entertainment and NBCUniversal;
• The signing of an exclusive partnership with Rai Com, making Canal+ the sole broadcaster of the Venice Film Festival in France and several countries in Europe and Africa, thereby allowing it to offer its subscribers exceptional coverage of the event in 2022 and 2023;
• The crossing of the ownership threshold of 25% in the South-African company MultiChoice Group, of which Canal+ Group has been the largest shareholder since September 2021;
• The acquisition of Zacu Entertainment, a major player in the production and distribution of content in Rwanda, thereby reinforcing the group’s commitment to African production;
• The securing of sports rights with the acquisition of the Premier Padel circuit until 2026 in over 60 countries, the renewal of rights to the Premier League in sub-Saharan Africa for the next three seasons and the renewal of broadcasting rights for LaLiga, now on an exclusive pay-TV basis in French, for subscribers in sub-Saharan Africa, Madagascar, and Mauritius; and
• The launch of two new sports channels in France since August 31, 2022, at no additional cost to subscribers: Canal+ Sports 360 and Canal+ Foot.

Furthermore, Canal+ Group has moved into a new headquarter in Issy-les-Moulineaux, Canal+ ONE. This complex brings together the France, International and Studiocanal teams in a single place for the first time in the history of the Canal+ Group. Deeply rooted in creation, Canal+ ONE is also a more open, more united, and more environmentally responsible place. With this new headquarter, Canal+ Group is now present in France on five sites with different but complementary functions, thereby forming a complete ecosystem.

In October, Cedric Jimenez's latest film, “November", coproduced and distributed by Studiocanal, chronicling the five-day investigation into the November 2015 attacks in Paris and Saint-Denis, largely dominated the French box office. Two weeks after its theatrical release, "November" surpassed one million admissions.

Communications: Havas Group

For the first nine months of 2022, Havas Group revenues were €1,922 million, up by 17.3% compared to the first nine months of 2021. Net revenues⁴ were €1,845 million, up by 17.7%, breaking down as follows: +8.7% in organic growth, +6.3% from currency effects and +2.7% from acquisitions.

By geographical region, the North American and European agencies continued to perform satisfactorily, supported by all three divisions, Creative, Health & You and Media. The performances in Asia-Pacific, Africa and Latin America remained solid.

In the third quarter of 2022, organic growth in net revenues⁴ slowed to +3.9% (+11.5% for the first half of 2022) because of the very high 2021 comparative basis (+17.8% for the third quarter of 2021).

Havas Group pursued its acquisition policy (majority stakes) in the United Kingdom, targeting areas of high value-added skills, with two noteworthy deals during this quarter:

- additive+: an agency specializing in data-driven creation; the acquisition extends Havas Media Group United Kingdom’s regional footprint to Edinburgh, adding to its existing presence in London, Manchester and Leeds; and

- Expert Edge: a full-service e-commerce and Amazon consultancy, in a move designed to accelerate the global expansion of the full-service e-commerce agency network Havas Market.

These two recent acquisitions, following those of Search Laboratory and Inviqa in the first half of 2022, further strengthen Havas Group’s position in the United Kingdom, its second-largest European market after France. With Front Networks (China), Frontier Australia (Australia), and Tinkle (Spain), a total of seven acquisitions have been finalized by Havas Group since the beginning of 2022.

At the end of September, Havas Group was continuing to generate solid financial results thanks to its dynamic and resilient client portfolio and its agility in responding to current macroeconomic and geopolitical challenges.

Publishing: Editis

For the first nine months of 2022, Editis’ revenues were €557 million, a decrease of 7.6% 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 4%⁵ compared to the same period in 2021, and to be put into perspective with last year’s unprecedented growth. Compared to the same period in 2019, which was also the year of the school reform, Editis’ revenues increased by 14% (excluding prescribed textbooks related to the reform), in line with market trends.

For the first nine months of 2022, Editis’ Tourism and Comics/Manga segments had outperformed an already dynamic market, posting double-digit growth. In the Comics/Manga segment, Editis is building on its flagship collections and expanding by opening new publishing houses: Black River, dedicated to comics, and Kotoon, specializing in Webtoons.

Editis, either through its owned publishing houses or through third-party publishers, remained at the top of the sales charts, with best-selling titles including Joël Dicker’s new book L’affaire Alaska Sanders, Noa by Marc Levy, Lucia thriller by Bernard Minier, La plus secrète mémoire des hommes by Mohamed Mbougar Sarr (2021 Prix Goncourt winner), and Labyrinthes by Franck Thilliez.

Through its acquisition in May 2022 of Educlever, whose services include the Maxicours and Enseigno tutoring platforms, Editis reinforced its ambition to become a key player in digital transformation, education, and training.

In addition, Editis is undertaking an ambitious modernization program for its logistics system, which incorporates the most innovative technologies and should, in particular, enable it to offer 24-hour delivery to booksellers in France.

Press magazine: Prisma Media

For the first nine months of 2022, Prisma Media’s revenues were €238 million, up by 2.7% at constant currency and perimeter compared to the same period in 2021 (pro forma⁶).

At the end of September, Prisma Media brands retained their leading positions in terms of digital audiences: Télé-Loisirs is No. 1 in the Entertainment segment with a monthly average of 18 million unique visitors (UVs); Capital is No. 1 in the Economic segment with 10 million UVs and Femme Actuelle is now No. 1 in the Women’s segment, taking the lead over Le Journal des Femmes.

Prisma Media has been chosen for the exploitation license of the magazines Dr.Good! and Dr.Good! C’est Bon!. The first issues, published in July and August 2022, were immediate newsstand successes.

The Gala brand turned in a stellar performance for the 79^th edition of the Venise Mostra festival, with more than 120 million Tiktok views within 10 days. Red carpet highlights, photo opportunities and celebrity interviews were shared daily on Gala’s Instagram and Tiktok accounts and aired each night during the TV Show Stars à Venise avec Gala on Canal+. Gala confirmed its position as the European Media leader on TikTok.

Hearst Magazines International chose Prisma Media to launch the French version of Harper’s Bazaar, the legendary brand specializing in fashion and style for over 150 years. The multi-year license will be globally deployed: print magazine, website, and social networks. The website and the first issue of the magazine will be launched during the spring of 2023.

Video games: Gameloft

For the first nine months of 2022, Gameloft's revenues were €215 million, up by 17.0% compared to the same period in 2021 in a sharply declining video game market.

For the third quarter of 2022, Gameloft’s revenues reached an all-time high of €95 million, up by 48.1% compared to the same period in 2021. This strong revenue increase results from Gameloft’s strategic shift towards console-PC-mobile multi-platform games. With Disney Dreamlight Valley, Gameloft is entering a new era. It is Gameloft's first-ever game to launch simultaneously on all console and PC platforms: Nintendo Switch, PlayStation 4 and 5, Xbox One and Series X/S, Steam, Epic and Microsoft Store. In just ten days, Disney Dreamlight Valley hit 1 million installs and was the No. 1 game on Steam, Game Pass, and Nintendo Switch. Additional multi-platform games from Gameloft studios and positioned as GaaS (Game as a Service) will be launched in the coming years.

Disney Dreamlight Valley, Asphalt 9: Legends, Disney Magic Kingdoms, Dragon Mania Legends, and March of Empires accounted for 49% of Gameloft’s total revenues for the first nine months and were the five best sellers of the period.

Thanks to the immediate success of Disney Dreamlight Valley, Gameloft's off-mobile diversification is accelerating: console and PC revenues represented 26% of Gameloft's total revenues for the first nine months of 2022.

Ticketing, live and festival: Vivendi Village

For the first nine months of 2022, revenues from ticketing, live and festivals⁷ were €169 million, compared to €60 million for the same period in 2021, which was impacted by the effects of the pandemic.

The business remains largely driven by ticketing operations, which accounted for 42% of revenues over the period, with excellent ticket sales momentum (24 million as of the end of September) in Europe and the United States.

New Initiatives: Dailymotion and GVA

For the first nine months of 2022, New Initiatives, which brings together Dailymotion and the GVA entities, recorded revenues of €83 million (compared to €60 million for the same period in 2021), an increase of €23 million (+39.8% at constant currency and perimeter).

For the first nine months of 2022, Dailymotion's revenues increased by 32.4% compared to the same period in 2021.

Dailymotion's audience grew in all regions with an average growth rate of 60% year-on-year. This growth was driven by new partnerships, in particular with Time Magazine and Vogue in the United States of America, Allo Ciné, JeuxVideo.com, Néo, Le Crayon, Break Media in France, CNBC Arabia in the United Arab Emirates and Tudogostoso in Brazil. Programmatic video advertising sales, mainly driven by France, the United States and the rest of EMEA, were up by 56% year-on-year for the same period.

Group Vivendi Africa (GVA) is a FTTH (Fiber-To-The-Home) operator specializing in the provision of very high-speed internet access and operating in eight metropolitan areas in Sub-Saharan Africa. At the end of the third quarter of 2022, more than 1.5 million homes and businesses were eligible for "CanalBox" FTTH internet access offers.

The slides relating to the third quarter 2022 revenues will be available on our website www.vivendi.com in the Shareholders & Investors section.

About Vivendi

Since 2014, Vivendi has been building a world-class content, media and communications group. The Group owns leading, highly complementary assets in television and movies (Canal+ Group), communications (Havas Group), publishing (Editis), magazines (Prisma Media), video games (Gameloft) and 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 global net zero carbon 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 increasing awareness of 21st -century challenges and opportunities. www.vivendi.com

Important Disclaimers

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.

Analyst Conference call

Speakers:
François Laroze
Member of the Management Board and Chief Financial Officer

Date: October 20, 2022
6:00 pm Paris time – 5:00 pm London time – 12:00 pm New York time
Media invited on a listen-only basis.
The conference will be held in English.
Internet: The conference can be followed on the Internet at: www.vivendi.com (audiocast)

Dial-In Numbers:

• USA: +1 212 999 6659

• France: +33 (0) 1 7037 7166

• UK (Standard International Access): +44 (0) 33 0551 0200

• Password: Vivendi

The slides of the analyst conference will be available on the company’s website www.vivendi.com.

APPENDIX I

VIVENDI
REVENUES BY BUSINESS SEGMENT
(IFRS, unaudited)

Third quarter

First nine months

na: not applicable.

1. As from January 1, 2022, this new operating segment includes Generosity and solidarity activities of the group. It covers CanalOlympia, previously part of Vivendi Village (2021 data has been restated), as well as the Vivendi Create Joy solidarity program, which supports initial and professional training projects in the Vivendi group’s businesses.
2. Constant perimeter notably reflects the impacts of Prisma Media consolidated since June 1, 2021.

APPENDIX I (cont’d)
VIVENDI

REVENUES BY BUSINESS SEGMENT
(IFRS, unaudited)

Quarterly revenues

1. As from January 1, 2022, this new operating segment includes the Generosity and Solidarity activities of the group. It covers CanalOlympia, previously part of Vivendi Village (2021 data has been restated), as well as the Vivendi Create Joy solidarity program, which supports initial and professional training projects in the Vivendi group’s businesses.
2. Vivendi has fully consolidated Prisma Media since June 1, 2021.

¹ At constant currency and perimeter. Constant perimeter notably reflects the impacts of Prisma Media consolidated since June 1, 2021.
² Excluding prescribed textbooks related to the school reform in 2019.
³ This press release contains unaudited consolidated revenues, established under IFRS.
⁴ Net revenues correspond to Havas Group revenues after deduction of costs rebilled to clients.
⁵ Source: GFK data as of September 25, 2022, based on revenues.
⁶ Vivendi has fully consolidated Prisma Media since June 1, 2021.
⁷ Vivendi Village revenues for 2021 have been restated: CanalOlympia is no longer part of Vivendi Village but of the “Generosity and solidarity” segment.