From Rudy Ruitenberg, Bloomberg:
Nov. 14 (Bloomberg) -- Vivendi SA, owner of the world's largest music company, reported its first profit decline in seven quarters, hurt by sliding sales of compact discs.
Third-quarter profit excluding one-time gains and some costs, which Vivendi calls adjusted net income, fell 1.4 percent to 721 million euros ($1.06 billion) from 731 million euros a year earlier, the Paris-based company said in a statement today. Analysts predicted adjusted net of 735 million euros, the median of eight estimates in a Bloomberg News survey.
Vivendi has overhauled its music business to become less dependent on CD sales, which are falling. SFR, the mobile-phone company that accounted for 43 percent of Vivendi's revenue last year, faces regulatory pressure in a mature wireless market. The company aims to add clients at its Canal Plus pay-television unit and sell more video games to keep revenue growing.
Vivendi's Universal Music is "still outperforming the competition but the music market continues to be very tough,'' wrote Patrick Wellington, an analyst at Morgan Stanley, in a preview note.
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