Vivendi's Q2 up on pay TV, video games

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NEW YORK -- Media and entertainment conglomerate Vivendi on Wednesday reported a 7.4% increase in second-quarter revenue to €5.2 billion ($7.13 billion), driven by growth in its pay TV and video game units.

On a constant currency basis, revenue rose 9%, the company said. Vivendi will report full financials, including bottom line results, at a later date.

Vivendi's music unit, Universal Music Group, posted revenue of €1.07 billion, a 0.8% year-over-year decline. The company cited "adverse currency movements" that were partly offset by additional revenue from the acquisition of BMG's music-publishing unit.

Assuming constant currencies, second-quarter music revenue rose 3.8% as UMG said it outperformed the broader market, especially in Japan. Digital music sales jumped 49% to €155 million ($212.7 million). Best-sellers in the quarter included new releases from Maroon 5, Rihanna and Bon Jovi, led by frontman Jon Bon Jovi (pictured).

UMG's digital sales for the first half amounted to €315 million ($432.2 million), up 51% and representing 15% of total music revenue, compared with 10.1% a year ago, Vivendi said.

Canal+ Group, Vivendi's pay TV unit, reported second-quarter revenue of €1.1 billion ($1.5 billion), up 16.4% thanks to the recent merger with TPS and subscriber gains.

The division ended the first half with 10.3 million subscribers. This meant more than 400,000 additions to the combined user count of Canal+ and TPS as of mid-2006.

Vivendi Games benefited from the continuing growth of the video game sector, boosting quarterly revenue 29%, or 37.8% on a constant currency basis, to €209 million ($286.7 million). The company cited continued momentum of its "World of Warcraft" online role-playing game thanks in part to an expansion pack released in the first quarter.

For the first half, Vivendi reported revenue of €10.2 billion ($14 billion), up 6.4% or 8% assuming constant currencies.
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