Preliminary Positive Trends of 2017 Operating Results for Vivendi Group

Regulatory News:

Vivendi (Paris:VIV) confirms its strong economic and financial performance in the main business activities for 2017:

Universal Music Group (UMG) confirmed its excellent momentum during the fourth quarter of 2017, which should lead, as expected, to revenue growth of around 10% and an improvement in EBITA close to 20%, at constant currency. In 2017, UMG signed new agreements with Spotify, YouTube and Facebook enabling improved flexibility and better monetization of artist content while creating new revenue streams for the years to come. In addition, the agreement signed with Tencent in 2017 offers opportunities for UMG artists in the Chinese market and will accelerate the development of a local repertoire.

Canal Group recorded a satisfactory development in the number of pay-tv subscribers in France, in addition to over 3 million customers signed up through telecoms operators. Outside France, growth remains very strong. At the end of 2017, Canal Group’s global subscriber base totaled more than 15.5 million. EBITA excluding restructuring is expected to increase by more than 30 % to reach €365 million in 2017. Thanks to this improvement, Canal+ Group accelerated reorganization projects, including the closing of the call center in Saint-Denis, near Paris, and the restructuring of another in Rennes, whose operating costs are double the amount charged by third-parties. In total, these exceptional restructuring projects cost close to €40 million for the fourth quarter of 2017. By 2019, the objective is to reach €500 million in EBITA excluding restructuring, a pro forma target set by the teams.

Havas, the sixth largest global communications group, is fully consolidated in Vivendi’s financial statements for the second half of 2017. Its performance improved compared to the first six months of the year. This integration, strongly accretive, will benefit Vivendi for the full year 2018 and will create positive synergies with Vivendi’s other businesses.

Gameloft, one of the world’s leading mobile video game operators, grew its revenues from the main digital stores (Apple, Google and Microsoft) by 5% and income from operations grew by at least 10% in 2017.

In addition, Vivendi is investing in new activities (CanalOlympia, Vivendi Africa, live, Vivendi Content and Dailymotion) which represent today approximately €100 million. Over time, these investments will generate new revenue streams. Dailymotion in particular has repositioned itself as a premium content platform whose worldwide rollout should be completed by mid-2018.