Vivendi offers Editis and will sell up to 50% of Universal Music

Vivendi announced a strategic shift on Monday (July 30th) with the acquisition of Editis from Spain's Grupo Planeta and a partial divestment of Universal Music Group (UMG). The media and entertainment group, struggling in its development in telecoms in Italy, said in a statement that the acquisition of Editis, for a business value of 900 million euros, would allow him to explore with Grupo Planeta new opportunities in publishing

"The acquisition of Editis would constitute a new major step in the construction of an integrated group focused on media, content and communication," said Vivendi in a statement. Editis, which has more than 50 publishing houses, including Nathan, Bordas, Robert Laffont, Presses de la Cité, Julliard, XO, Plon, Perrin, Pocket, Belfond and Le Cherche Midi, achieved a turnover in 2017 approximately 750 million euros and a recurring operating profit of approximately 60 million.

Cash in particular to buy back shares

Vivendi, which counts on UMG as cash machine, announces at the same time a plan for the sale of up to 50% of the capital of the record company to one or more strategic partners. The group, which announced mid-May the launch of studies for a possible change in capital of UMG, said it excludes an IPO "because of its complexity."

This operation should be launched this fall and could be spread over 18 months and Vivendi will soon hold banks to conduct this search for strategic partners, the group adds. "The cash from this sale could be used for a significant share buyback program and a capital reduction," Vivendi also said in his presentation. Vivendi adds that it will define a "minimum reserve price" for the entry of partners in the capital of UMG. In Italy, the group of Vincent Bolloré, the main shareholder of Telecom Italia, said last week "very concerned" about the situation of the Italian telecom operator since the fund activist Elliott took control of his board. 19659002] In its presentation of the half-year results, Vivendi reported a write-down of 512 million euros, as part of the adjustments in the value of the portfolio of listed badets. Vivendi invokes in particular the risk of execution of the 2018-2020 industrial plan "given Vivendi's lesser power in making financial and operational IT decisions."

Overall, Vivendi is confident of its prospects for the future. the second half of 2018, particularly at Cbad +, confirming its objective of Ebita before restructuring charges of up to 450 million euros over the year. In the first half, the group posted an adjusted operating profit (EBIT) up 31.6% organic data in the first half to 542 million euros, more than the 513 million euros expected by the consensus reached for Reuters by Inquiry Financial

Vivendi also achieved a half-year revenue growth of 4.0% to 6.463 billion, close to the expected 6.474 billion, thanks to a jump of 34.3% in revenue from music in streaming and by subscription and a 19% increase in the number of gross subscriptions to individual subscribers to Cbad + in metropolitan France.

(With Reuters)