SFR’s poor performance penalizes Vivendi group

by bold-lichterman

The Vivendi group yesterday published its results for the first quarter of 2013. The group reports a turnover of 7 billion euros, almost stable compared to the first quarter of 2012.

In contrast, Vivendi saw its adjusted operating income decline by 17.2% over the same period to stand at 1.344 billion euros. An erosion which is largely explained by the poor performance of its subsidiary SFR.

Indeed, faced with the price war in the mobile market, the telecom operator recorded a drop in turnover of 11.4% to 2.6 billion euros. Its Ebitda fell, for its part, by 24.5% to 702 million euros.

Given these results, Etienne Du Vignaux, SFR’s chief financial officer, told Reuters: “This is undoubtedly the worst result of the year, we expect better in the second and third quarter”.