Vivendi's First Quarter Report

Some of you might not even care but Vivendi had a press release summarizing their first quarter financial status. There is however a little something about Wrath in here (bolded so you don't have to read the whole report. You're welcome :D ).

Vivendi Games · Vivendi Games continues to make strong headway with Blizzard Entertainment, inc and World of Warcraft ®, adding 2 million incremental subscribers compared to end of March 2007; After reaching the 10-million-subscriber milestone at the end of 2007, World of Warcraft's subscriber base grew to more than 10.7 million by the end of the first quarter of 2008.

A comparison of the first quarters of 2007 and 2008 performances is not representative because the first quarter of 2007 included the hugely successful release of World of Warcraft: The Burning Crusade. Blizzard Entertainment's second expansion, World of Warcraft: Wrath of the Lich King, is scheduled to be released in the second half of 2008. Consequently, Vivendi Games' revenues for the first quarter of 2008 are 24.1% lower (-18.2% on a constant currency basis) when compared to the same period last year. Vivendi Games' revenues was 221 million.

Blizzard Entertainment's revenues was 192 million. Sierra Entertainment, Sierra Online and Vivendi Games Mobile revenues were slightly higher than their performance for the same period last year; in the face of unfavorable currency exchange movements on all business segments.

· Vivendi Games' EBITA amounted to 50 million. Excluding the allocation of Group overheads, Blizzard Entertainment's EBITA was 99 million.

Sierra Entertainment's EBITA of -34 million (excluding the allocation of Group overheads) was effected by higher costs related to increased investment in Sierra product development and accelerated royalties expense for released products.

Vivendi Games' EBITA also includes continued start up expenses for the Sierra Online and Vivendi Games Mobile divisions. Comments on Vivendi's First Quarter 2008 Financial Indicators Revenues amounted to 5,280 million compared to 5,020 million for the first quarter of 2007, an increase of 260 million (+5.2%, representing +6.9% at constant currency). EBITA totaled 1,203 million compared to 1,274 million in the first quarter of 2007, a decrease of 71 million (-5.6% or -3.9% at constant currency) which was mainly driven by the favorable settlement of a tax litigation (+73 million) in the first quarter of 2007 and Vivendi Games (-57 million), with the impact of the exceptionally successful release of the first expansion pack, World of Warcraft: The Burning Crusade, also in the first quarter of 2007. In addition, in the first quarter of 2008, EBITA included a net reduction in the provision for stock options and other share-based compensation plans (+38 million) and Canal+'s two extra Ligue 1 soccer match days compared to the first quarter of 2007 (-32 million).

Income from equity affiliates totaled 85 million compared to 82 million for the first quarter of 2007. Our share of income from NBC Universal represented 53 million for the first quarter of 2008 compared to 65 million for the first quarter of 2007, a decrease driven by the decline of th U.S. dollar and NBC Universal's performance. SFR's share of income from Neuf Cegetel represented 33 million compared to 18 million for the first quarter of 2007.

Adjusted net income amounted to 697 million with 0.60 per share, compared to 771 million with 0.67 per share for the first quarter of 2007, a decrease of 74 million (-9.6%). Earnings attributable to equity holders of the parent amounted to 555 million with 0.48 per share, compared to 932 million with 0.81 per share for the first quarter of 2007, a decrease of 377 million (-40.5%), which was primarily due to the dilution profit on the sale of a 10.18% equit interest in Canal+ France to Lagardère (+239 million) in the first quarter of 2007.

So, it seems like Vivendi is holding up fairly well.

BTW: My Mage is now currently 66 and climbing. We hope to have him to 70 by next weekend - if not sooner!

This just in: Morgan Webb hates the Horde. You rock Morgan! :-D