PRESS RELEASE |
20 October 2020 |
Group activities show strong resilience in third quarter 2020
despite 3% decline in revenue
- Revenue in the third quarter 2020: €5,915 million
- -3% at constant scope and exchange rates
- -4% as reported
- Revenue at the end of
September 2020 : €17,527 million- -4% at constant scope and exchange rates
- -2% as reported
Revenue for the third quarter 2020
At constant scope and exchange rates, the Group’s revenue for the third quarter 2020 was down 3% to €5,915 million. This change mainly includes:
- a 2% increase in the transportation and logistics business driven by freight forwarding, mainly due to exceptional air freight operations, despite the contraction in logistics activities in
Africa and the impact of the end of theDouala terminal (DIT) concession inCameroon ;
- the decline in oil logistics (-38%) primarily attributable to the fall in oil product prices and volumes;
- the growth in the communications business (+1%), attributable to Vivendi which benefited from growth at UMG (+6%), the Canal+ group (+1%) and
Editis (+10%);
Revenue as reported was down 4% compared to the third quarter of 2019, due to a €132 million negative foreign exchange impact related to the strengthening of the euro (particularly versus the US dollar in the third quarter), which absorbed the positive changes in scope related primarily to the consolidation of M7 at the Canal+ group.
Revenue at the end of September 2020
At constant scope and exchange rates, revenue at the end of
Reported revenue was down 2%, including €340 million from changes in consolidation scope (consolidation of
Change in revenue by business |
(in € millions) | 3rd quarter | 9-month total | ||||||||
2020 | 2019 | Reported | Organic | 2020 | 2019 | Reported | Organic | |||
growth | growth | growth | growth | |||||||
Transportation and Logistics | 1,420 | 1,462 | -3% | +2% | 4,276 | 4,436 | -4% | -1% | ||
Oil Logistics | 401 | 645 | -38% | -38% | 1 447 | 1 923 | -25% | -25% | ||
Communications | 4,021 | 3,969 | +1% | +1% | 11 595 | 11 320 | +2% | -1% | ||
Electricity Storage and Systems | 65 | 85 | -23% | -7% | 187 | 244 | -23% | -8% | ||
Other (agricultural assets and holdings) | 8 | 7 | +8% | +8% | 21 | 24 | -12% | -13% | ||
Total | 5 915 | 6 169 | -4% | -3% | 17,527 | 17,949 | -2% | -4% |
At constant scope and exchange rates, compared to the first nine months of 2019, the main sectors changed as follows:
- Transportation & Logistics, Oil Logistics:
- Revenue for the Transportation and Logistics business was down 1%, primarily due to the reduction in logistics and handling in
Africa and the termination of the DIT port concession inDouala (Cameroon ) at the end of 2019, partly offset by excellent performances at port terminals, in particularAbidjan Terminal in the Republic of Côte d’Ivoire,Freetown Terminal inSierra Leone ,Owendo Terminal inGabon andConakry Terminal inGuinea .
- Revenue for the Transportation and Logistics business was down 1%, primarily due to the reduction in logistics and handling in
Conversely, international freight forwarding revenue was up sharply due to continuing sustained growth in air freight largely offsetting the decline in sea freight.
Lastly, rail activity was down following a landslide which halted traffic and the suspension of hydrocarbon transportation between the Republic of Côte d’Ivoire and
v Revenue for Oil Logistics was down 25% in view of the fall in the price of oil products and, to a lesser extent, volumes over the first nine months of 2020.
§ Communications (Vivendi): Revenue amounted to €11,595 million, down 1% at constant scope and exchange rates and up 2.4% as reported compared to the same period in 2019. It benefited from growth in revenue from UMG, driven by music streaming platforms, Canal+ group, through significant international development, and
§ Electricity Storage and Systems: Revenue from industrial activities (electricity storage, plastic films, dedicated terminals and systems) was down 8% compared to the first nine months of 2019. These business activities were impacted by the health crisis, due to plant closures in particular as well as the decline in the air freight sector, a key market for IER. Conversely, sales of batteries were up sharply, driven by the contract with
Third quarter highlights and recent events:
§ Opening of UMG’s share capital
Vivendi successfully completed the first phase of the opening of UMG’s share capital. On
The consortium, which is led by Tencent and includes
This transaction is complemented by a separate agreement allowing
Following the success of this significant strategic transaction, Vivendi is pursuing its plan to sell additional minority interests in UMG with the assistance of several mandated banks. An IPO is planned for 2022.
The cash generated by these transactions may be used by Vivendi to reduce its financial debt and to finance a significant share buyback program and acquisitions.
§ Lagardère SCA
At
Following the disappointing results announced by Lagardère SCA, on
As the Lagardère SCA Supervisory Board and management refused the proposals of its largest and second largest shareholders respectively,
On
§ MultiChoice Group Ltd
On
§ Vivendi share repurchase program
Since
As of
§ Tender offer on Blue Solutions by Bolloré
The tender offer on Blue Solutions at a price of €17 per share, which took place
§ Sale of
In
§ Impact of the health crisis
Although the impact is more severe for certain countries and business lines than for others, the Group has shown resilience and adaptability in continuing to serve its customers to the best of its ability whilst lowering costs to preserve its margins. Transportation and Logistics business continues to benefit from exceptionally high freight transport rates, which partly offset the slowdown in the usual flows. Communications activities have shown good resilience, particularly music and pay-TV. However, other activities have been impacted by the health crisis as anticipated.
The Group is conducting a careful assessment of the current and potential consequences of the crisis. At this stage it is difficult to determine the impact of the crisis on full-year results. The advertising and live performance sectors are particularly likely to suffer long-term impacts. However, the Group remains confident in the resilience of its main business lines. It is doing everything possible to ensure the continuity of its activities and to serve and entertain customers and audiences as well as possible, while following instructions from the authorities of each country where it is established.
§ Group liquidity
As of
Change in revenue per quarter |
(in € millions) | 1st quarter | 2nd quarter | 3rd quarter | ||||||
2020 | 2019 (1) | 2019 | 2020 | 2019 (1) | 2019 | 2020 | 2019 (1) | 2019 | |
Transportation and Logistics | 1,394 | 1,468 | 1,483 | 1,462 | 1,448 | 1,491 | 1,420 | 1,394 | 1,462 |
Oil Logistics | 631 | 669 | 665 | 415 | 617 | 613 | 401 | 647 | 645 |
Communications | 3,868 | 3,706 | 3,458 | 3,706 | 4,022 | 3,893 | 4,021 | 3,995 | 3,969 |
Electricity Storage and Systems | 65 | 63 | 75 | 58 | 71 | 85 | 65 | 70 | 85 |
Other (agricultural assets and holdings) | 8 | 8 | 8 | 6 | 9 | 8 | 8 | 7 | 7 |
Total | 5,966 | 5,914 | 5,690 | 5,646 | 6,166 | 6,090 | 5 915 | 6,113 | 6 169 |
(1) At constant scope and exchange rates
All amounts are expressed in millions of euros and rounded to the nearest decimal.
As a result, the sum of the rounded amounts may differ slightly from the reported total.
Attachment
- 2020 10 20 Fin Odet CAT3 GB
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