Good half-year figures and confirmed annual forecasts
Net sales: 22.4% growth at half-year to euros 18.2 billion, with internal growth of more than 11% in environmental services and communications 25–30% growth for the full year
Operating income: 75% growth at half-year to euros 908.5m, including 40% on a like-to-like basis and at constant exchange rates >65% growth for the full year
Net income: 29% growth to euros 783m at half-year, with 20% growth forecast for the full year
Vivendi Water
More than euros 12 billion in annual net sales (est. 2000)
The combined skills of more than 70,000 people
Top line growth estimated at 9% p.a. outside France
The "7"
Almost 90,000 new lines and 70,000 new customers in September
In total, almost 900,000 customers and over 1.2 million lines at end of September (residential and SO/HO customers)
Half-year figures on target, confirming annual forecasts
a) Half-year statements
Vivendi's net sales for the first half of 1999 amounted to euros 18.2 billion, compared with euros 14.9 billion for the same period last year, representing growth of more than 22%. Environmental services and communications accounted for euros 12.7 billion, compared with euros 10 billion for the same period the previous year, representing growth of almost 26%.
Operating income reached euros 908.5m (compared with euros 519.7m), up almost 75%. On a like-to-like basis and at constant exchange rates, the increase is in the order of 40%. In the Environmental Services Division, operating income amounted to euros 658.5m, representing growth of 34% over first-half 1998.
In the Communications Division, operating income was euros 198.1m, compared with euros 43m for the first half of 1998. Havas's contribution increased 13% to euros 106m, representing almost 30% growth on a like-to-like basis and at constant exchange rates.
In the Construction & Property Division, the improvement in performance is more than satisfactory – the division recorded operating income of euros 82m for the first six months of this year compared with a loss of euros 9m at June 1998.
Net income amounted to euros 783m after taking into consideration net financial expense of euros 87m and net exceptional expense of euros 57m.
Cash flow from operations was about euros 2 billion, up almost 20% over the first six months of 1998. It covered all capital expenditure for the period, which amounted to euros 1.4 billion, down some 15% on first-half 1998.
b) Full-year outlook
Net sales are expected to show an increase of 25–30% and exceed euros 40 billion, with growth of more than 10% in environmental services and over 30% in communications.
Operating income is expected to increase by more than 65%, with net income up 20% compared with 1998.
Vivendi Water
More than 200 Générale des Eaux and USFilter managers met on September 20 to create Vivendi Water, the world leader in the water industry.
The combined skills and experience of Vivendi Water's 70,000 employees form a business entity worth euros 11.8 billion in net sales for 1999, with operations in more than 100 countries serving the needs of more than 100 million people. Excluding water distribution in France, growth is expected to be more than 9% a year to reach euros 15.4 billion in 2004. Improved margins will result from optimizing purchasing and rationalizing manufacturing costs, in particular through scale effects.
To achieve these objectives, Vivendi Water intends to expand outsourcing contracts with municipal authorities outside France, industrial services, equipment, and design and build services for water and wastewater facilities, as well as consumer services.
The "7" fixed-line telephone service
Cegetel's growth in fixed-line telephony continues to be satisfactory. The "7" brought almost 90,000 new lines into service in September and recorded almost 70,000 new customers in the residential and SO/HO sectors (excluding business customers), representing twice the budget forecast. This takes the total number of customers to almost 900,000, representing over 1.2 million lines.
October 4th, 1999