Investing.com -- Vivendi (EPA:VIV) on Monday reported stable first-quarter revenues of €69.4 million and a sharp reduction in financial net debt, driven by its exit from Telecom Italia (BIT:TLIT).
The French investment company’s net asset value rose to €5.2 billion as of March 31, an increase of 7.8% from €4.8 billion at the end of December.
Financial net debt, adjusted for the loan to Lagardère, fell to €1.66 billion from €2.07 billion. The debt figure was recorded before the company received €684 million from selling a 15% stake in Telecom Italia ordinary shares to Poste Italiane.
Vivendi said the sale marked a significant step in its strategy to concentrate on content, media and entertainment.
"Our divestment from the telecoms industry led us to sell most of our stake in TIM, resulting in a substantial decrease in our financial net debt," chairman Yannick Bolloré and chief executive Arnaud de Puyfontaine said in a statement.
Gameloft, Vivendi’s video game subsidiary, generated €68.5 million in revenues for the quarter, making up nearly all of the group’s total revenue. PC and console games contributed €31.9 million, up 13.5% at constant currency and perimeter compared to a year earlier.
Mobile games brought in €33.3 million, down 10.5%. Gameloft’s five top-selling titles, Disney (NYSE:DIS) Dreamlight Valley, Asphalt Legends Unite, Disney Magic Kingdoms, March of Empires, and Disney Speedstorm, accounted for 56% of the unit’s total revenues.
Gameloft also launched a new game, Carmen Sandiego, first released on Netflix (NASDAQ:NFLX) in January and later on PC and consoles in March. The title was well received in the gaming press, Vivendi said.
The company’s listed investment portfolio was valued at €6.8 billion at the end of March, slightly lower than €6.9 billion three months earlier.
Its largest holdings include a 9.93% stake in Universal Music Group (AS:UMG) valued at €4.6 billion, along with stakes in Telecom Italia, Banijay Group, Media For Europe, Lagardère and Prisa (BME:PRS).
Vivendi said it reviewed and adjusted the composition of its Supervisory and Management Boards to align with its new corporate structure after the group’s split in December.
"Vivendi owns a portfolio of high-quality assets and maintains a solid balance sheet in the face of a turbulent and uncertain economic and stock market environment," the executives said.