Vivendi reports 'solid' Q1, but portfolio value shrinks

(Sharecast News) - Content, media and entertainment investor Vivendi reported a "solid" first quarter, with revenue growth helped by a strong performance from wholly owned video game producer Gameloft, though the value of its wider portfolio shrank over the three-month period.

The company, whose interests include stakes in music label Universal Music Group, content outfit Banjijay, and publishing and travel retail firm Lagardère, said its portfolio was valued at €4.77bn by 31 March, down from €5.87bn as of 31 December.

In particular, the value of the company's 9.9% holding in Universal dropped to €3.02bn, from €4.04bn three months earlier, as the music corporation's share price sank.

Meanwhile, group revenues totalled €69m for the first quarter, up 1.3%. at constant currencies year-on-year, driven by Gameloft, which reportedly continues to grow in a "sluggish" video game market.

"[Gameloft's] strategic rebalancing towards the PC/console segment is continuing," said chair Yannick Bolloré and chief executive Arnaud de Puyfontaine in a joint statement. "Gameloft is once again demonstrating strong momentum with the announcement that two new video games adapted from extremely popular franchises will be launched over the coming months," they said.

The firm, which acquired the luxury and lifestyle publications of Prisma Media at the end of March, renamed the division V Collection, which will specialise in "cultural luxury content", holding the French license of Harper's Bazaar, Côté Maison, IDEAT, MilK and The Good Life. V Collection will contribute to revenues from the second quarter onwards.

The stock was up 1% at €2.22 by 0941 BST.