Vivendi Limits Sales Drop on Strong Lockdown Music Streaming

(Bloomberg) -- Vivendi SA’s music business has held up through virus lockdowns, limiting the blow to the French media group from a drop in advertising and publishing revenue.

• Vivendi’s revenue fell 4.8% to 3.71 billion euros ($4.37 billion) in the second quarter, above the average analyst forecast of 3.63 billion euros.

Key Insights

• The global pandemic has left the media company controlled by French billionaire Vincent Bollore even more reliant on Universal, the world’s biggest music company that was already its biggest investment by far.
• Universal is still surfing on the surge in music streaming that dragged the industry out of a decade-long slump. After a brief decline, music listening in the U.S. is already back at pre-Covid levels, according to Billboard.
• The company said it is difficult to assess how the virus will affect its annual results and that “businesses related to advertising and live performance are likely to be affected longer than others.”

Market Context

• Vivendi shares are down 15% since the start of the year as investors anticipated the hit from the global pandemic on its publishing arm Editis and advertising agency network Havas.

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