Regulatory News:

Vivendi (Paris:VIV):

For the first quarter of 2021, Vivendi's revenues were EUR3,901 million up 5.0% at constant currency and perimeter (1) compared to the first quarter of 2020. This increase is mainly due to the 9.4% growth for Universal Music Group (UMG) and the 40.1% jump for Editis, partially offset by the slowdown in the other activities, particularly Vivendi Village, which continues to be affected by the consequences of the health crisis. On an actual basis, Vivendi's revenues were up 0.8%.

Although the COVID-19 pandemic is having a more significant impact on certain countries or businesses than others, in fiscal year 2020 and in the first quarter of 2021, Vivendi has demonstrated resilience in adapting its activities to continue to best serve and entertain its customers, while reducing costs to preserve its margins. The business activities demonstrated good resilience, in particular music and pay television. However, as expected, the other businesses such as Havas Group and Vivendi Village (in particular live entertainment) were affected by the pandemic's effects.

Vivendi continually monitors the current and potential consequences of the crisis. It is difficult at this time to determine how it will impact Vivendi's results in 2021. Businesses related to live performance have a risk of being more impacted than others. Nevertheless, the Group remains confident in the resilience of its main businesses. It continues to make every effort to ensure the continuity of its activities, as well as to best serve and entertain its customers and audiences while complying with the guidelines of authorities in each country where it operates.

Following the approval by 99.98% of Vivendi's shareholders at the Extraordinary General Meeting of March 29, 2021, of an amendment to the company's by-laws, which now allows Vivendi to distribute dividends or interim dividends, reserves or premiums by way of the delivery of assets in kind, including financial securities, Vivendi will ask its shareholders at the Annual Shareholders' Meeting to be held on June 22, 2021, to adopt a position on the plan to make an exceptional distribution in kind in the form of UMG shares to its shareholders, with completion expected in fall 2021.

Comments on the Businesses

Universal Music Group

For the first quarter of 2021, UMG's revenues amounted to EUR1,809 million, up 9.4% at constant currency and perimeter compared to the first quarter of 2020 (+2.2% on an actual basis).

Recorded music revenues grew by 10.8% at constant currency and perimeter thanks to the growth in subscription and streaming revenues (+19.6%) and despite the receipt of a digital royalty claim in the first quarter of 2020. Physical sales were up 14.8% compared to the first quarter of 2020, driven by better new release and catalog sales.

Recorded music best sellers for the first quarter of 2021 included new releases from King & Prince and Justin Bieber, as well as continued sales from The Weeknd, Ariana Grande and Pop Smoke.

On the Spotify global chart, UMG had the No. 1 track 12 of 13 weeks in the first quarter of 2021 with Olivia Rodrigo's "Driver's license" and Justin Bieber's "Peaches". UMG also had all of the Top 3 songs on Spotify's global chart for six consecutive weeks.

UMG set a new record on April 1, 2021 by having the top-selling album in the United States on the Billboard 200 for 17 consecutive weeks, breaking the previous chart record of 16-straight weeks set by UMG in 2014.

Music publishing revenues grew by 6.9% at constant currency and perimeter compared to the first quarter of 2020, driven by increased subscription and streaming revenues.

Merchandising and other revenues were down 10.0% at constant currency and perimeter compared to the first quarter of 2020, as touring activity continued to be impacted by the pandemic and despite improved retail and direct-to-consumer sales.

In February 2021, UMG announced the launch of Virgin Music Label & Artist Services, which offers premium and flexible artist and label services to the industry's most dynamic entrepreneurs and independent artists worldwide. This new model for global distribution and label services, combining UMG's unrivalled regional executive teams with dedicated resources and industry-leading services and technology, will help foster long-term partnerships and deliver global success for the next generation of independent labels and artists.

Canal+ Group

For the first quarter of 2021, Canal+ Group's revenues amounted to EUR1,357 million, almost stable compared to the first quarter of 2020 (-0.1% at constant currency and perimeter).

Revenues from television operations in mainland France slightly decreased, amid, in particular, a downturn in the advertising market due to the pandemic.

Canal+ subscriber satisfaction in France is at its highest level since 2017 (subscriber satisfaction barometer conducted between November and December 2020).

Revenues from international operations grew by 1.6% at constant currency and perimeter.

Studiocanal recorded a significant revenue increase (+8.9% at constant currency and perimeter), driven by good performances in catalog and TV series revenues.

In the first quarter of 2021, Canal+ announced several strategic agreements. On February 3, 2021, Starzplay, the premium streaming service from Starz, joined Canal+ offerings. By integrating Starzplay, Canal+ Group took yet another step in its ambition to aggregate the best content and apps on the market.

On February 4, 2021, the Professional Football League and Canal+ Group announced a global agreement for the audiovisual rights for Ligue 1 Uber Eats and Ligue 2 BKT for the 2020-2021 season. Since the 25th day of Ligue 1 Uber Eats and Ligue 2 BKT, and until the end of the 2020-2021 season, Canal+ Group had the exclusive audiovisual rights, live and in full, to all Ligue 1 Uber Eats matches and eight of the ten Ligue 2 BKT matches. In addition to the audiovisual rights to these matches, Canal+ Group holds all weekday and weekend magazine rights.

On March 2, 2021, Canal+, which has been a partner of the TOP 14 for more than 35 years, won the latest call for tenders launched by the National Rugby League for broadcasting rights in France until the end of the 2026-2027 season. These exclusive broadcasting rights cover all TOP 14 matches, live as well as near-live clips, and all programs devoted to them, in all media formats.

Havas Group

As global economies continue to recover, Havas Group posted better than expected first quarter 2021 results. Organic growth in net revenues(2) continued to improve quarter after quarter, coming in at -0.8% for the first quarter of 2021, compared to -10.4% for the third quarter of 2020 and -7.5% for the fourth quarter of 2020.

For the first quarter of 2021, net revenues were EUR478 million, down 5.7%. Exchange rates had a negative impact of -5.9% (+1.8% for the first quarter of 2020) and acquisitions contributed +1.0%.

Improved performance was reported in all geographic regions. Despite an unfavorable base effect, the North American agencies reported satisfactory growth thanks to a buoyant market. The Health division leveraged its market leadership position to generate sustained growth. Benefiting from a favorable comparative base in March, Europe showed signs of recovery in both the Creative and Media businesses, with organic growth moving into positive territory. Latin America continued its recovery, and Asia Pacific saw the first encouraging signs emerge from the new organization, introduced at the end of 2020.

For the first quarter of 2021, Havas Group's revenues were EUR502 million, up 0.8% at constant currency and perimeter, and down 4.2% on an actual basis compared to the first quarter of 2020.

Havas Group's business activity remained dynamic, driven by its innovative new offerings, Havas CX (Customer Experience) and Havas Market, launched in the second half of 2020. Following on from Cross Border Solutions in the United States and Uber Eats in France, Havas Group continues to win new accounts with high-end clients such as Volkswagen for Customer Experience in the United Kingdom and Keurig Dr Pepper for Media in the United States.

Editis

For the first quarter of 2021, Editis's revenues were EUR163 million, an increase of 40.1% at constant currency and perimeter compared to the same period in 2020. This strong achievement stems from a boom in the market environment since January 2021. However, it is not solely the result of a favorable basis of comparison with the first quarter of 2020 and the beginning of the lockdown in France, since Editis's revenues increased by 20.1% at constant currency and perimeter compared to the first quarter of 2019 adjusted(3) .

At Editis, General Literature and Diffusion & Distribution sales recorded outstanding performances, with several titles topping the bestseller charts. Editis has nine titles in the GFK Top 20 for large-format literature, four more than in 2020. Camille Kouchner's story, La familia grande, published by Seuil, was number 2 in the Top GFK at the end of March 2021. Rien ne t'efface, the new novel by Michel Bussi, published by Presses de la Cité, recorded exceptional sales, increasing 52% compared to the previous title based on equivalent sales weeks. Also particularly noteworthy was the release of volume 2 of Marc Levy's successful "9" series, Le crépuscule des fauves, published by Robert Laffont.

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04-22-21 1240ET