Vivendi reported media and aommunications pro forma revenue of B7.29bn ($6.9bn), falling slightly short of Merrill’s estimates and earnings of B1.49bn ($1.34bn).
But overall, the company said it was “comfortable” with 2001 media and communications earnings for the year slightly above B5bn ($4.51bn).
On a divisional basis, said Merill Lynch, outperformance came in the Canal+ and film businesses, which was ten percent ahead of Merrill’s B2.1bn ($1.9bn)estimate.
Merrill’s recommendation remains a “buy” with a 12-month price objective of B62.
Merrill Lynch is currently acting as financial advisor to Vivendi in connection with the merger of its sports-rights businesses (through Canal Plus Group), RTL Group and Groupe Jean-Claude Darmon.
Vivendi has agreed to pay Merrill Lynch a fee for its financial advisory services which is partly contingent upon completion of the proposed transaction.
That is subject to the approval of Groupe Jean Claude Darmon shareholders and the merger is still waiting clearance form European competition authorities.
Vivendi Universal (VU), owners of Canal Plus and the sports marketing company Sport +, has reported “solid results” for the third quarter and are on target for earnings of B
