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1. Company Snapshot

1.a. Company Description

Vivendi SE operates as a entertainment, media, and communication company in France, the rest of Europe, the Americas, Asia/Oceania, and Africa.It operates through Canal+ Group, Havas Group, Editis, Prisma Media, Gameloft, Vivendi Village, Corporate, and New Initiative segments.The Canal+ Group segment publishes and distributes premium and thematic pay-TV and free-to-air channels; and produces, sells, and distributes movies and TV series.


The Havas Group segment includes communications disciplines, such as creativity, media expertise, and healthcare/wellness.The Editis segment engages in the publishing of literature, educational, and reference books, as well as selling and distribution of books.The Prisma Media segment publishes online videos.


The Gameloft segment engages in the creation and publishing of downloadable video games for mobile phones, tablets, triple-play boxes, and smart TVs. The Vivendi Village segment provides ticketing services and live performances through Olympia production, festival production, and venues.The Corporate segment offers centralized services.The New Initiative segment operates Dailymotion, a video content aggregation and distribution platform, as well as develops ultra-high-speed Internet service.


Vivendi SA was founded in 1853 and is headquartered in Paris, France.

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1.b. Last Insights on VIV

Vivendi SE's recent performance has been impacted by its Q1 earnings miss, which raised concerns about the company's growth prospects. The company's media and entertainment business faced challenges, leading to a cautious outlook. Additionally, the ongoing shift in consumer behavior towards digital media and increasing competition in the market have created uncertainty. According to recent reports, Vivendi's valuation is being reassessed by investors, with some analysts questioning the company's ability to adapt to changing market conditions. (Source: Bloomberg)

1.c. Company Highlights

2. Vivendi Earnings Review: Strategic Shifts and Financial Adjustments

Vivendi delivered a mixed performance in 2024, marked by strategic adjustments and financial recalibrations. The company reported revenue of €297 million, down 4.9% year-over-year, reflecting the challenges in its core operations. The net asset value stood at €4.8 billion, or €4.69 per share, while adjusted net income came in at €111 million. The year saw a significant fair value adjustment of €5.7 billion, driven by the completion of its spin-off project, which valued the separated assets at €7.1 billion. This strategic move aimed to streamline operations and enhance shareholder value, though the short-term financial impact remains under scrutiny.

Publication Date: Mar -10

📋 Highlights
  • Completion of Spin-Off Project: - Vivendi finalized its spin-off project with assets valued at €7.1 billion, including €6.9 billion in listed securities, and reported a net asset value of €4.8 billion after adjustments for debt and liabilities. A significant fair value adjustment of €5.7 billion was recorded due to spin-off asset valuations.
  • Revenue Performance: - Total revenue for 2024 stood at €297 million, reflecting a decrease of 4.9% year-over-year. This decline was attributed to challenges across the portfolio, though specific segments showed resilience despite the broader dip.
  • Gameloft's Operational Improvement: - Gameloft reported a revenue decline of 5.7% to €293 million, but EBITDA improved from €5 million to €8 million, indicating operational efficiency and margin enhancement despite the revenue shortfall.
  • Portfolio Strategy Adjustments: - Vivendi aims to reduce corporate costs in 2025 and focus on transforming Gameloft into a leading multi-platform publisher. The company also plans to exit its Telecom Italia stake as market conditions improve.
  • Dividend Proposal: - Vivendi proposed a dividend of €0.04 per share (~€40 million total) for approval at the April 28 shareholder meeting, signaling a commitment to returning value to shareholders amid strategic realignment.

Financial Performance and Portfolio Adjustments

Vivendi's financial performance highlighted both resilience and vulnerability. The €5.7 billion fair value adjustment underscored the complexity of its spin-off process, while the decline in revenue reflected broader macroeconomic pressures and operational challenges. The company's net debt of €2.72 billion, with a 30% loan-to-value ratio, signals a cautious approach to capital management. Vivendi’s portfolio remains diversified, with stakes in Universal Music Group, Telecom Italia, and Gameloft, though the company is exploring exits from certain investments as market conditions evolve.

Strategic Reorientation and Growth Initiatives

Vivendi’s strategy is centered on portfolio optimization and cost efficiency. The company reaffirmed its commitment to transforming Gameloft into a leading multi-platform publisher, despite a 5.7% revenue decline to €293 million. Gameloft’s EBITDA improved from €5 million to €8 million, indicating operational progress. Vivendi also emphasized its intent to reduce corporate costs in 2025, signaling a shift toward leaner operations. In the Q&A, CEO Arnaud de Puyfontaine stated, "Our focus remains on maximizing shareholder value through disciplined portfolio management and operational excellence." This reflects a strategic pivot toward selective investments and divestitures.

Valuation and Dividend Update

From a valuation perspective, Vivendi’s metrics suggest a cautious market outlook. The company’s price-to-book (P/B) ratio of 0.62 indicates a discount relative to its peers, while the dividend yield of 8.88% offers attractive income potential. Vivendi has proposed a €0.04 per share dividend, totaling approximately €40 million, aligning with its commitment to returning capital to shareholders. However, the company’s net debt-to-EBITDA ratio of 1.83 underscores the importance of maintaining financial discipline as it pursues strategic initiatives.

Outlook and Risks

Vivendi’s outlook hinges on its ability to execute its spin-off strategy and optimize its portfolio. The planned exit from Telecom Italia and the transformation of Gameloft into a gaming powerhouse are critical to unlocking value. However, risks such as macroeconomic volatility and competitive pressures in the gaming sector could impact progress. Analysts estimate a 2.0% revenue growth for next year, suggesting cautious optimism about Vivendi’s ability to stabilize and grow its core businesses.

3. NewsRoom

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Vivendi Takeover by Bollore Less Likely After Court Rules in Favor of Billionaire

Nov -28

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French court hears opening arguments in Bolloré/Vivendi break-up dispute

Nov -25

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LVMH: Share transactions disclosure

Sep -09

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The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

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Cointreau Launches First-Ever Ready-To-Serve Range – Introducing Cointreau Citrus Spritz

Sep -09

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What Does the Steep 20% Drop Mean for Rémy Cointreau’s 2025 Outlook?

Sep -09

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Société Foncière Lyonnaise (ENXTPA:FLY): Assessing Valuation After a Year of Solid Share Price Gains

Sep -09

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Minor Hotels Europe & Americas (BME:NHH): Exploring Valuation After Steady Share Performance

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.94%)

6. Segments

Canal+ Group

Expected Growth: 4.63%

Canal+ Group's 4.63% growth is driven by increasing demand for premium content, expansion into new markets, and strategic partnerships. The group's focus on original productions, sports broadcasting, and thematic channels has attracted new subscribers. Additionally, Vivendi's diversification into digital platforms and e-commerce has contributed to the growth.

Havas Group

Expected Growth: 4.77%

Havas Group's 4.77% growth is driven by increasing demand for digital marketing services, expansion in emerging markets, and strategic acquisitions. The company's focus on data-driven marketing and innovative solutions also contributes to its growth. Additionally, Vivendi SE's support and resources have enabled Havas to invest in talent and technology, further fueling its expansion.

Lagardere

Expected Growth: 4.6%

Lagardere's 4.6% growth from Vivendi SE is driven by its diversified business model, strong presence in the travel retail market, and strategic acquisitions. The company's focus on digital transformation, cost savings initiatives, and growth in emerging markets also contribute to its growth. Additionally, Lagardere's robust cash flow generation and solid financial position support its expansion plans.

Gameloft

Expected Growth: 10.93%

Gameloft's 10.93% growth is driven by increasing demand for mobile gaming, successful titles such as Asphalt and Clash of Clans, and strategic partnerships. Vivendi's resources and expertise have also enabled Gameloft to expand its portfolio and improve operational efficiency, leading to higher revenue and profitability.

Prisma Media

Expected Growth: 4.65%

Prisma Media's 4.65% growth is driven by increasing demand for digital media, strategic acquisitions, and a strong brand portfolio. The company's focus on diversifying its revenue streams, expanding into new markets, and investing in digital transformation initiatives have also contributed to its growth. Additionally, Vivendi SE's support and resources have enabled Prisma Media to capitalize on emerging trends and opportunities.

Vivendi Village

Expected Growth: 4.65%

Vivendi Village's 4.65% growth is driven by increasing demand for live events and ticketing, expansion of its digital platform, and strategic acquisitions in the entertainment industry. Additionally, the segment benefits from Vivendi SE's diversified revenue streams, including music, television, and video games, which provide a solid foundation for growth.

New Initiatives

Expected Growth: 10.95%

Vivendi SE's 10.95% growth is driven by strategic new initiatives, including expansion into emerging markets, diversification of revenue streams, and investments in digital transformation. Additionally, the company's focus on content creation, acquisition of new assets, and strategic partnerships have contributed to its growth momentum.

Eliminations and Other

Expected Growth: 4.83%

Vivendi SE's Eliminations and Other segment growth of 4.83% is driven by the consolidation of Canal+ Group, a French television network, and the integration of Editis, a French publishing company. Additionally, the segment benefits from the growth of Vivendi Village, a platform for live entertainment and ticketing, as well as the expansion of Vivendi's digital content offerings.

Generosity and Solidarity

Expected Growth: 6.37%

Vivendi SE's 6.37% growth is driven by its commitment to Generosity and Solidarity, fueled by increasing demand for inclusive and socially responsible entertainment content, strategic partnerships, and expansion into emerging markets, while leveraging its diversified portfolio of media and content businesses.

7. Detailed Products

Universal Music Group

Universal Music Group is a global music corporation that operates as a subsidiary of Vivendi SE. It is one of the largest music corporations in the world, with a vast catalog of music from various genres and artists.

Canal+ Group

Canal+ Group is a French premium television channel that offers a range of TV channels, on-demand services, and film production. It is a leading provider of premium content in France and internationally.

Gameloft

Gameloft is a leading developer and publisher of mobile games, with a portfolio of popular titles such as Asphalt and Modern Combat.

Vivendi Village

Vivendi Village is a global live entertainment and ticketing business that operates in multiple countries, offering a range of events, concerts, and festivals.

Editis

Editis is a leading French publishing group that operates in the book publishing industry, with a range of imprints and titles across various genres.

8. Vivendi SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Vivendi SE operates in the media and entertainment industry, where substitutes are limited. However, the rise of digital media and streaming services has increased the threat of substitutes, making it a medium-level threat.

Bargaining Power Of Customers

Vivendi SE's customers have limited bargaining power due to the company's diversified portfolio of media and entertainment businesses, making it a low-level threat.

Bargaining Power Of Suppliers

Vivendi SE relies on a diverse range of suppliers, including content creators, talent agencies, and technology providers. While suppliers have some bargaining power, the company's scale and diversification mitigate this threat, making it a medium-level threat.

Threat Of New Entrants

The media and entertainment industry is highly competitive, and new entrants can easily disrupt the market with innovative business models and technologies, making it a high-level threat.

Intensity Of Rivalry

The media and entertainment industry is highly competitive, with many established players and new entrants vying for market share, making it a high-level threat.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.58%
Debt Cost 3.95%
Equity Weight 75.42%
Equity Cost 8.17%
WACC 7.13%
Leverage 32.59%

11. Quality Control: Vivendi SE passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Atresmedia

A-Score: 7.1/10

Value: 7.0

Growth: 3.9

Quality: 7.0

Yield: 10.0

Momentum: 7.0

Volatility: 7.7

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Orange Polska

A-Score: 6.5/10

Value: 7.3

Growth: 4.1

Quality: 4.5

Yield: 8.1

Momentum: 7.0

Volatility: 8.0

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Bolloré

A-Score: 5.1/10

Value: 10.0

Growth: 2.4

Quality: 4.8

Yield: 1.9

Momentum: 1.5

Volatility: 10.0

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CTS Eventim

A-Score: 4.5/10

Value: 2.2

Growth: 7.9

Quality: 6.8

Yield: 2.5

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

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FL Entertainment

A-Score: 3.4/10

Value: 3.8

Growth: 5.1

Quality: 4.3

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Vivendi

A-Score: 2.7/10

Value: 4.8

Growth: 1.7

Quality: 3.3

Yield: 4.4

Momentum: 0.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.4$

Current Price

2.4$

Potential

-0.00%

Expected Cash-Flows