Vivendi Reports 87% Q1 Sales Jump, Progresses Feasibility Study for Planned Split

French media conglomerate Vivendi reported an 87% increase in its first-quarter sales, reaching 4.3 billion euros. The company said that a feasibility study for its planned split into four separate businesses, including Canal+, advertising firm Havas, and a company grouping its publishing and distribution assets, is advancing.

The option being examined is a partial split, where these three entities would be listed separately, while Vivendi would stay listed, maintaining its role of supporting the expansion of its units and actively managing its investments. The strong sales performance was driven by Vivendi's Canal+ and Havas businesses, as well as the consolidation of Lagardère, which Vivendi took over last year.

Canal+ Group's revenues in Q1 2024 were EUR 1,542 million, up 4.3% compared to Q1 2023. The hypothesis being examined is a partial split of Vivendi, where these three entities would become independent, listed companies, while Vivendi would remain publicly listed, supporting the transformation and expansion of its subsidiaries and actively manage its investments.

Why this matters: Vivendi's potential split into separate businesses and its strong Q1 sales performance highlight the company's strategic direction and growth in the media and entertainment industry. The move could unlock value for shareholders and allow the individual businesses to pursue focused growth strategies.

Vivendi's first-quarter 2024 sales reached EUR 4.275 billion, up 5.4% at constant currency and perimeter compared to the same period in 2023. The feasibility study for the planned split is a significant step forward for the company as it explores options to optimize its structure and create long-term value.

Key Takeaways

• Vivendi reports 87% increase in Q1 2024 sales to €4.3 billion.
• Feasibility study underway for planned split into 4 separate businesses.
• Canal+ and Havas drive strong sales performance, Lagardère consolidation.
• Partial split examined, with 3 entities listed separately, Vivendi remaining public.
• Split aims to unlock value, allow focused growth strategies for subsidiaries.