- Revenues of €10.510 billion, up 9.5% due to the growth of Canal+ Group and Havas as well as the integration of Lagardère as of December 1, 2023
- EBITA of €934 million, up 7.5% and 11.7% at constant currency and perimeter, due in particular to the growth of Havas and Canal+ Group, as well as the integration of Lagardère as of December 1, 2023
- Earnings attributable to Vivendi SE shareowners of €405 million
- Continuation of the study of the feasibility of the split project
PARIS–(BUSINESS WIRE)–Regulatory News:
Yannick Bolloré, Chairman of Vivendi’s (Paris:VIV) Supervisory Board, said: “2023 was a pivotal year for our Group.
We are delighted to have been able to complete the combination with Lagardère. This transaction has enabled us to become the world’s third-largest publishing group, number one in France and number two in the UK, and a world leader in travel retail. On a full- year basis, this combination between Vivendi and Lagardère would represent a proforma revenues of €18 billion in 2023 (€16.5 billion in 2022). Our Group today has a workforce of nearly 73,000 people, out of which 36,000 at the Lagardère group.
I would like to thank all the teams who have contributed to the success of this complex transaction, and who have rapidly ensured a smooth collaboration between the two groups. I would also like to acknowledge the Lagardère Group’s excellent results, published a week ago by Arnaud Lagardère and his teams.
The strategy of transformation and internationalization that we have been implementing for several years is behind the very solid results we are presenting today. This strategy has enabled our core businesses to become leaders in their sectors, more agile and ready to embark on a new phase of their development.
The study of the feasibility of a project to split the company into four listed entities, announced last December, is continuing. If it goes ahead, this project would create value for all the Group’s stakeholders and would enable the creation of independent pure players with the necessary human resources and financial agility, capable of driving their own growth trajectory in an international context marked by numerous investment opportunities.
Arnaud de Puyfontaine, Chairman of Vivendi’s Management Board, added: “Vivendi’s 2023 results reflect the financial strength of its main businesses, as well as their ability to adapt and structurally transform to their environment. The integration of Lagardère as of December 1, 2023, also had a very favorable impact on the growth of our company’s revenues and EBITA.
Canal+ Group successfully pursued its international expansion, particularly in Asia, the Nordic countries and Africa. It added nearly 900,000 new subscribers over the year, both in France and abroad. At the same time, Canal+ continued to expand its content offering and entered into major partnerships, while Studiocanal enjoyed a record year in cinema.
Lagardère posted a significant increase in revenues in 2023, and its recurring EBIT was up sharply. The strong upturn in Travel Retail continued, while Publishing, in a generally lackluster environment, recorded good growth in its key markets.
Havas is one of the best-performing companies in its sector, with the dynamic growth of net revenues continuing in the fourth quarter of 2023, and a year-on-year improvement in the EBITA margin. The company pursued its strategy of targeted acquisitions, and forged important alliances in the technology field, notably in artificial intelligence.
I would also like to acknowledge the work carried out by Prisma Media, which today owns some thirty benchmark brands, and has built up a solid “interior decoration and luxury” division with the creation and acquisition of several flagship titles, while increasing its share of business in the booming digital arena.
The first few months of 2024 confirm the continued positive trends of the activities of our main businesses.”
The Supervisory Board, at a meeting held today under the chairmanship of Yannick Bolloré, reviewed the consolidated financial statements for the fiscal year ended December 31,2023, which were approved by the Management Board on March 4, 2024.
The Management Board also provided the Supervisory Board with another update on the feasibility study for the proposed split of the company into several entities announced on December 13, 2023. Given the importance of this project and the profoundly transformative impact it would have on the Group, the Supervisory Board is closely monitoring the progress of the work. As previously stated, this project will have to demonstrate its added value for all stakeholders.
The Group is continuing its feasibility study. In any event, several important steps will have to be taken if the Supervisory Board gives the Management Board authority to go ahead with the project. These would include, among others, the consultation with the employee representative bodies of the entities concerned, before which no decision in principle could be taken, obtaining the necessary regulatory approvals, the approvals required from the Group’s creditors and the consent of Vivendi’s shareholders at a General Shareholders’ Meeting. As indicated last December, the completion time for such a transaction would be 12 to 18 months.
The Group will inform the market of any significant developments regarding the project.
- Lagardère
On November 21, 2023, Vivendi finalized its transaction with the Lagardère group. This transaction gives Vivendi a whole new dimension, consolidating its positions as a major player in culture, media and entertainment, and becoming a world leader in publishing and travel retail.
This transaction took effect following the closing of the two sales Vivendi had committed to with the European Commission, i.e. the sale of 100% of Editis to International Media Invest (IMI) which occurred on November 14, 2023, and the sale of Gala magazine (owned by Prisma Media) to Groupe Figaro which was completed on November 21, 2023.
- Comments on earnings
This press release contains audited consolidated financial results for the 2023 fiscal year, established under IFRS, which were approved by Vivendi’s Management Board on March 4, 2024, reviewed by Vivendi’s Audit Committee on March 4, 2024, and by Vivendi’s Supervisory Board on March 7, 2024.
Revenues
In 2023, Vivendi’s revenues were €10,510 million, up 9.5% compared to 2022. This change reflected the growth of Canal+ Group (+€188 million) and Havas (+€107 million), as well as the impact of the consolidation of Lagardère from December 1, 2023 (+€670 million). At constant currency and perimeter, Vivendi’s revenues grew by 2.6%, compared to 2022, mainly due to the performance of Canal+ Group (+2.9%) and Havas (+4.3%).
For the second half of 2023, Vivendi’s revenues were €5,812 million, compared to €5,066 million for the second half of 2022. This increase of 14.7% included the impact of the consolidation of Lagardère from December 1, 2023 (€670 million), as well as revenue growth for the second half of 2023 at Canal+ Group (+€102 million) and Havas (+€46 million), partially offset by the revenue decrease at Vivendi Village (-€63 million) following the cessation of its concert production activities (Olympia Production) at year-end 2022. At constant currency and perimeter, Vivendi’s revenues in the second half of 2023 grew by 2.2% compared to the second half of 2022, mainly due to the performance of Canal+ Group (+3.4%) and Havas (+4.4%).
EBITA was €934 million, an increase of 7.5% compared to 2022. It included income from equity affiliates – operational of Universal Music Group (UMG) for €94 million, compared to €124 million in 2022, and Lagardère for €125 million until November 30, 2023, compared to €98 million in 2022.
Excluding this income from equity affiliates, EBITA was €715 million, up 10.6% compared to 2022 notably due to the growth of Havas (+€24 million) and Canal+ Group (+€10 million), as well as the strong improvement of Vivendi Village’s results (+€19 million). This change also reflected the impact of the consolidation of Lagardère from December 1, 2023 (€20 million).
At constant currency and perimeter, EBITA increased by 11.7% compared to 2022. Excluding income from equity affiliates – operational, EBITA increased by 12.1% at constant currency and perimeter. This change was due to the performance of Havas (+8.0%), New Initiatives (+26.3%) and Vivendi Village.
Income from investments was €81 million, compared to €50 million in 2022. In 2023, it mainly included dividends from FL Entertainment for €29 million, MediaForEurope for €28 million (unchanged compared to 2022) and Telefonica for €18 million (unchanged compared to 2022).
Other financial charges and income were a net charge of €158 million, compared to a net charge of €952 million in 2022. As a reminder, as of December 31, 2022, Vivendi ceased to account for its interest in Telecom Italia under the equity method and, therefore, Vivendi recorded a charge of -€1,347 million. In 2022, this line item also included the capital gain of €515 million realized on June 30, 2022, following the contribution of Vivendi’s interest in Banijay Group Holding to FL Entertainment.
Adjusted net income was a profit of €722 million (or €0.70 per share – basic), compared to €343 million in 2022 (or €0.33 per share – basic), an increase of €379 million (x2.1). In 2022, it notably included Vivendi’s share of the net earnings of Telecom Italia4 (-€334 million) accounted for under the equity method – non-operational.
Earnings attributable to Vivendi SE shareowners amounted to a profit of €405 million (or €0.40 per share – basic), compared to a loss of €1,010 million in 2022 (-€0.98 per share – basic), an increase of €1,415 million.
In 2022, such earnings included the fair value adjustment of the Telecom Italia1 shares (-€1,347 million as of December 31, 2022), Vivendi’s share of Telecom Italia’s net earnings (-€393 million) as well as the goodwill impairment loss of €300 million in relation to Editis, partially offset by the capital gain realized on the contribution of the interest in Banijay Group Holding to FL Entertainment (+€515 million).
- Liquidity
As of December 31, 2023, Vivendi’s Financial Net Debt amounted to €2.839 billion (of which €812 million at the Vivendi level excluding Lagardère and €2.027 billion at the Lagardère level) compared to a Financial Net Debt of €860 million as of December 31, 2022.
In addition, Vivendi has significant financing capacity. As of December 31, 2023, available committed credit facilities amounted to €3.2 billion and Vivendi’s consolidated shareowners’ equity amounted to €17.2 billion.
- CSR performance
As part of its Creation for the Future CSR (Corporate Social Responsibility) program, Vivendi has set a common course for the entire Group. By 2023, the Group has stepped up its efforts to help build a more inclusive society and contribute to the fight against climate change.
Among the Group’s most notable environmental advances, its greenhouse gas emissions reduction trajectory has been validated by the Science-Based Target (SBTi) initiative since March 2023. Vivendi reduced its greenhouse gas emissions on scopes 1 and 2 by 20% in 2023 compared to 2022, and 60% of the electricity consumed by the Group worldwide now comes from renewable sources (+23 points compared with 2022 and +39 points compared to 2021).
On the social front, Vivendi increased the proportion of women in its workforce by 5 points in 2023 compared with 2022, to 58%, and by 2 points, to 40%, in its management bodies2. Vivendi is delighted to have reached the target set by the Rixain law3 6 years ahead of schedule, and to have been recognized among the “Parity Champions”.4
On the societal front, the Vivendi Foundation, created in August 2023 to promote access to culture for as many people as possible, has strengthened the Group’s philanthropic commitment, which in 2023 benefited more than 30,000 people in 15 countries through more than 40 funded projects.
To carry out its mission, the Foundation offers programs based on two priority areas of intervention: access to culture and access to cultural professions. Vivendi Create Joy, Orphée and Canal+ University, pre-existing projects perfectly aligned with these priorities, are now included in the missions of the Vivendi Foundation, which will also be able to develop new programs and actions.
- General Shareholders’ Meeting to be held on April 29, 2024
At the General Shareholders’ Meeting to be held on April 29, 2024, shareholders will be asked to renew the authorization granted to the Management Board by the General Shareholders’ Meeting of April 24, 2023, to repurchase shares at a maximum price of €16 per share, up to a limit of 10% of the share capital (2024-2025 program), with the option of canceling the shares acquired up to a limit of 10% of the capital.
The General Shareholders’ Meeting will vote on the proposal to distribute an ordinary cash dividend of €0.25 per share in respect of fiscal year 2023, identical to the dividend paid last year. This amount represents a yield of 2.6% compared to the closing price of Vivendi shares on December 31, 2022. The ex-dividend date would be April 30, 2024, and payment would occur as from May 3, 2024.
The General Shareholders’ Meeting will also be asked to renew the terms of office of Yannick Bolloré as a member of the Supervisory Board, and Laurent Dassault as an independent member of the Board (see biographies before the appendices).
- Comments on the Businesses Key Financials
- Canal+ Group continues to expand its subscriber base, adding 900,000 new subscribers in 2023. It is actively pursuing its international development in Europe, Asia-Pacific and Africa. In particular, it will file a mandatory offer for the MultiChoice Group shares it does not already own by no later than April 8.
- Lagardère, consolidated as of December 1, 2023, achieved double-digit revenue growth for fiscal year 2023 (+16.6% compared to 2022), thanks to the Travel Retail and Publishing segments, which posted strong performances in the markets where they hold leading positions.
- Havas enjoyed another year of strong growth (+4.4% of organic growth in net revenues compared to 2022) and its EBITA margin has been steadily growing for several years. At the same time, Havas continued its targeted acquisitions policy (10 new agencies in 2023).
Canal+ Group: accelerating its international growth
At year-end 2023, Canal+ Group’s total subscriber portfolio (individual and collective) reached 26.4 million, compared to 25.5 million at the year-end 2022. In 2023, Canal+ Group’s revenues were €6,058 million, up 3.2% compared to 2022 (+2.9% at constant currency and perimeter).
Revenues from television operations in mainland France increased by 3.3% at constant currency and perimeter compared to 2022, driven by growth in the subscriber base and ARPU (Average Revenue Per User). The total subscriber portfolio in mainland France recorded a net growth of 290,000 subscribers over the past twelve months, reaching 9.8 million subscribers.
Revenues from international operations increased by 1.2% compared to 2022 (+0.5% at constant currency and perimeter). The total subscriber portfolio outside mainland France has recorded a net growth of 575,000 subscribers over the past twelve months, reaching a total of 16.6 million subscribers at year-end 2023.
Studiocanal achieved a record year in 2023, due to successful film releases in theaters, both in France (e.g., over 4 million admissions for Alibi.com 2, 1.2 million admissions for All Your Faces, and 1.1 million admissions for The Animal Kingdom) and in other Studiocanal markets, as well as strong growth in international sales and very good performance of its catalog.
In 2023, Canal+ Group’s EBITA amounted to €525 million, up 2.0% (+1.3% at constant currency and perimeter) compared to 2022.
During the fourth quarter of 2023, Canal+ Group continued its international development and further strengthened its content offering, in particular with:
- the launch of a new streaming platform in the Netherlands, offering a combination of linear TV channels and a rich catalog of films and series on demand. After recent successful launches in Austria, Czech Republic and Slovakia, Canal+ Group takes another step in its European development;
- the renewal of exclusive broadcasting rights for the PGA Tour (American golf circuit) in France until 2030; and;
- the acquisition of the WTA (women’s tennis) circuit rights in the Czech Republic and Slovakia.
On January 6, 2024, Canal+ Group and Warner Bros. Discovery announced the renewal of their exclusive premium agreement for Warner Bros. Pictures films. This multi-year agreement will allow Canal+ Group to continue to offer its subscribers exclusive access to Warner Bros. Pictures films, such as Barbie (the biggest American box office success of 2023), just six months after their theater release in France.
On January 30, 2024, telecommunications operator Free launched its new Freebox Ultra, which includes the Canal+ Live channel at no extra cost. This new offering is unique, and its durable integration into an operator’s box is a first in the history of Canal+ Group.
On January 31, 2024, following approval from the French Competition Authority, Canal+ Group completed the acquisition of the OCS pay-TV package and Orange Studio, the film and series co-production subsidiary, from its historical partner Orange. The French Competition Authority authorized the transaction after a detailed analysis of its effects on the market and made it subject to compliance with several commitments given by Canal+ Group.
Following the recapitalization of Viaplay, the leading pay-TV operator in the Nordic countries, which was completed on February 9, 2024, Canal+ Group holds 29.33% of the company’s capital and remains its largest shareholder.
Canal+ Group also announced on February 26, 2024, that it took another step in its ambition to make Asia its next growth driver by increasing its stake in Viu to 30%, in accordance with the terms of the transaction announced on June 21, 2023.
Canal+ Group, MultiChoice Group’s largest shareholder crossed the 35% threshold of the share capital of the company and announced on February 1,2024 that it had submitted to MultiChoice Group’s Board of Directors a non-binding indicative offer (NBIO) to acquire all the issued ordinary shares of MultiChoice Group that it does not already own.
This NBIO was rejected by MultiChoice Group’s Board of Directors on February 5, 2024.
On February 28, 2024, the South African Takeover Regulation Panel (TRP) ruled that Canal+ Group is under the obligation to launch a public tender offer for all the shares in MultiChoice Group that it does not already own.
On March 5, 2024, in a joint statement with MultiChoice Group, Canal+ Group announced that it was increasing its offer to R125 per share, paid in cash, valuing MultiChoice Group at €2.6 billion (treasury shares excluded).
MultiChoice Group entered into an exclusivity agreement with Canal+ Group, which will submit its mandatory offer by no later than April 8, 2024. As a result, MultiChoice Group’s independent board will be constituted and will provide its opinion and recommendation on the transaction. Canal+ Group has reiterated its commitment to the listing of MultiChoice Group on the Johannesburg Stock Exchange (JSE), as well as its support for MultiChoice Group’s high B-B BEE status (certification of fair-trade practices in South Africa) and its recognition of the importance of Phuthuma Nathi (a broad-based shareholding program within MultiChoice Group, for shareholders who belong to the part of the South African population considered historically disadvantaged).
Lagardère: double digit growth
In 2023, Lagardère’s revenues were €8,081 million, up 16.6% as reported and up 14.0% at constant currency and perimeter compared to 2023. The difference between reported revenues and revenues at constant currency and perimeter was attributable to a -€83 million unfavorable currency effect and a positive scope effect of €242 million. Recurring EBIT (operating profit of fully consolidated companies) was €520 million in 2023, a strong increase of €82 million compared to 2022.
In 2023, Lagardère Publishing revenues were €2,809 million, up 2.2% as reported (up 1.9% at constant currency and perimeter) compared to 2022, in a generally lackluster environment.
Lagardère Publishing achieved strong revenue growth in its key markets in 2023.
In France, revenues grew by 6.1% compared to 2022, higher than the market growth. This strong performance was driven by the Illustrate Books segment which benefited in 2023 from the release of a new Asterix album, L’Iris Blanc, and an illustrated album, Asterix & Obelix : L’Empire du Milieu, as well as from a very successful year in the Young Adult Dark Romance segment. Literature also had a good year driven by a record-breaking performance for Le Livre de Poche as well as successful hardcover editorial releases such as Son odeur après la pluie by Cédric Sapin-Defour (Stock) and Le Suppléant by Prince Harry (Fayard).
Revenues in the United Kingdom were up 6.1%, due notably to bestsellers in the Trade Adult segment, both in fiction and non-fiction.
In Spain/Latin America, revenues were sharply up by +17.9%. In Spain, the Education segment experienced strong growth, benefiting from the peak of the national school reform.
In the United States, revenues were down 6.8% compared to 2022 in a declining market.
Recurring EBIT was €301 million, stable compared to 2022. Profitability remained at a high level of 10.7%, significantly higher than pre-Covid performances (9.2% in 2019) despite the Polaris project in France.
In 2023, Lagardère Travel Retail revenues were €5,018 million, up 27.8% and 23.4% at constant currency and perimeter compared to 2022.
In France, business continued to recover, with revenues up 15.9% due to robust sales at regional airports.
Revenues in the EMEA region (excluding France) grew 26.6%, driven by the increase in international tourist traffic, excellent performances in Italy and Poland, and network expansion.
The Americas region continued to grow, with revenues increasing 16.3% compared to 2022 against an already high comparison basis, benefiting from a favorable local economic context, particularly in the United States, and the strong recovery of international traffic in Canada.
Asia-Pacific revenues were up sharply by 52.1%, from a low 2022 comparison basis in 2022 in the region, following the delayed reopening in China.
Recurring EBIT reached an all-time high of €245 million, up €109 million compared to 2022, with growth across all geographical regions. This performance was due to the increase in revenues combined with good margin control in a context of high inflation, government aid in the United States, and efficiency gains brought by the ramp-up of the LEaP operational efficiency plan.
In 2023, revenues of the other activities were €254 million, stable as reported (-3.3% at constant currency and perimeter) compared to 2022.
Radio revenues were down 8.3% compared to 2022 due to lower audience figures at the Radio unit, despite early signs of an uptick in listeners at Europe 1. Press revenues were down -9.4%, due to lower circulation. Revenues from the International “Elle” licenses were broadly stable compared to 2022.
Lagardère has received from the LVMH group an offer to acquire magazine title Paris Match. At its meeting of February 27, 2024, Lagardère’s Board of Directors decided to enter into exclusive discussions with the LVMH group. The employee representative bodies would be consulted on the mooted disposal in due course.
Contacts
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Jean-Louis Erneux
+33 (0)1 71 71 15 84
Solange Maulini
+33 (0) 1 71 71 11 73
Investor Relations
Xavier Le Roy
+33 (0)1 71 71 18 77
Nathalie Pellet
+33 (0) 1 71 71 11 24
