French telecoms and media group Vivendi has posted a 48.6 per cent year-on-year drop in earnings for its second quarter – but its games division has reported a whopping 91.9 per cent jump in operating profit.
The firm's overall sales grew 7.4 per cent year-on-year to €5.2 billion, up from €4.8 billion in the second quarter of 2006.
But earnings fell 48.6 per cent to €594 million euros, down from €1.15 billion in the same period last year – mainly due to the company's $700 million windfall in 2006 from selling shares in chemical company DuPont.
However, the companys Vivendi Games division reported a year-on-year 91.9 per cent jump in EBITA (Earnings Before the Deduction of Tax and Amortization Expenses) to €119 million – largely thanks to the nine million-strong subscriber base for World of Warcraft and sales of sequel The Burning Crusade.
Vivendi demonstrated significant growth in revenues, EBITA, adjusted net income and cash flow generation in the first half of 2007," said chairman of Vivendi's management board Jean-Bernard Lvy. "This proves the effectiveness of a strategy focused on developing and investing in the entertainment industry."
He continued: "By the end of the year, we expect to exceed the record year we had in 2006 and we confirm our outlook for an adjusted net income above €2.7 billion. The business unit dynamic remains excellent and our long-term objectives are on target.”