• Revenue: EUR297 million for 2024.
• EBITA: Decreased by 1%.
• Adjusted Net Income: EUR111 million.
• Net Earnings Group Share: Loss of EUR6.4 billion due to fair value adjustment of spin-off assets.
• Net Asset Value: EUR4.8 billion, EUR4.69 per share.
• Investment Portfolio Value: EUR7.1 billion, with EUR6.9 billion in listed securities.
• Gameloft Revenue: Decreased from EUR311 million in 2023 to EUR293 million in 2024, a 5.7% decrease.
• Gameloft EBITA: Increased from EUR5 million to EUR8 million.
• Net Debt: EUR2.72 billion.
• Loan-to-Value Ratio: 30%.
• Dividend Proposal: EUR0.04 per share, representing a yield of 1.5%.

• Warning! GuruFocus has detected 9 Warning Signs with VVVNF.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Vivendi SE (VVVNF) successfully completed the spin-off and respective listings of Group Canal Plus, Havas, and Louis Hachette Group, marking a significant restructuring achievement.
• The company's portfolio value as of December 31, 2024, amounts to over EUR7.1 billion, with EUR6.9 billion in listed securities.
• Vivendi SE (VVVNF) has seen a 15% rise in its stock price since the beginning of the year, outperforming the SBF 120 index.
• Havas closed a historic year with exceptional performance, contributing positively to the group's overall results.
• Gameloft, despite a revenue decrease, improved its EBITA from EUR5 million to EUR8 million due to effective cost management.

Negative Points

• The spin-off resulted in a EUR5.7 billion impact due to the fair value adjustment of the assets, leading to a significant accounting loss.
• Vivendi SE (VVVNF) reported a net income group share loss of EUR6.4 billion for 2024.
• Revenue from Gameloft decreased by 5.7% from EUR311 million in 2023 to EUR293 million in 2024.
• The company's financial debt remains high, with a net debt of EUR2.72 billion and a loan-to-value ratio of 30%.
• Corporate costs remain a concern, although there is a plan to reduce them further in the coming years.

Q & A Highlights

Q: Can you please remind me of the long-term strategy with the video games asset? A: Arnaud De Puyfontaine, CEO, stated that Vivendi is pleased with Gameloft's performance, which has shown strong results even without new launches. The strategy is to generate organic growth while increasing operational margins and to pursue potential bolt-on acquisitions to expand the company. There is no intention to exit the gaming operations, contrary to some speculation.

Q: Are you planning to reduce corporate costs further in the coming years, and what could be the normative corporate cost level? A: Francois Laroze, CFO, mentioned that while specific figures are not disclosed, there is a trend towards reducing corporate costs. Over 25 people have left Vivendi following the spin-off, which will positively impact 2025 figures. The company is focused on reducing all types of operational expenses.

Q: Could we have an update on the situation with Telecom Italia and the potential sale of your stake? A: Arnaud De Puyfontaine, CEO, confirmed that Vivendi intends to sell its stake in Telecom Italia. The company is waiting for the right opportunity to exit on favorable terms and is actively working towards a solution.

Q: What is the impact of the spin-off on Vivendi's financials? A: Francois Laroze, CFO, explained that the spin-off has significantly impacted Vivendi's financials, with a fair value adjustment of EUR5.7 billion. Despite this, the adjusted net income remains positive at EUR111 million, reflecting the group's recurring results.

Q: How has Gameloft performed financially in 2024? A: Francois Laroze, CFO, reported that Gameloft's revenue decreased by 5.7% from 2023 to 2024, but due to effective cost management, EBITA increased from EUR5 million to EUR8 million. Before restructuring charges, EBITA rose from EUR10 million to EUR14 million, indicating strong performance.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.