Vivendi sales rise in 2001

February 11, 2002 Posted: 1319 GMT

LONDON (CNN) -- Vivendi Universal on Monday posted better-than-expected revenue for 2001 and predicted stronger sales for this year.

The world's second biggest media group said sales totalled 57.36 billion euros ($49.9 billion) last year, about 1 billion euros above forecasts, in its first full-year results following the purchases of Canada's Seagram and France's Canal Plus.

In 2000, Vivendi posted actual revenues of 41.58 billion euros. But on a proforma basis, the company's revenues totalled 58.19 billion euros in 2001 compared with 53.05 billion euros the previous year.

"Our 2001 results give us confidence that we can achieve our growth targets again in 2002," Vivendi said in a statement, adding it was forecasting revenue growth of "at least 10 percent" this year.

Vivendi's shares rose by about 3 percent to 48.24 euros in midday trading on Monday in Paris.

The company said its television and film sales rose 8 percent to 9.5 billion euros in 2001 from 4.25 billion euros the previous year. The division includes Universal Studios and Canal Plus.

Sales at Vivendi's telecommunications unit, which includes France's second biggest phone company Cegetel, jumped 24 percent to 7.64 billion euros.

Its publishing unit, which includes Houghton-Mifflin Inc., rose 5 percent to 4.29 billion euros, while sales at its Internet division increased 36 percent to 129 million euros, driven by growth in Europe and the U.S.

The company's Universal Music Group, however, posted a 1 percent drop in sales to 6.56 billion euros due to flat sales in North America and declines in Latin America.  

Its environment services group saw sales rise 11 percent to 29.09 billion euros last year, while its media and communications unit posted sales of 28.12 billion euros, up 9 percent from 2000.

Vivendi has been transformed into a media company from a water utility, and has been acquiring assets to strength its distribution channels in the United States.

In December, Vivendi agreed to buy the entertainment assets of USA Networks in a deal valued at $10.3 billion.