Activision Blizzard profits boost parent company Vivendi
Sales flat at €28.81 bn, net profits rise to €2.68 bn
Vivendi SA, a majority shareholder in Activision Blizzard, has revealed that its profits have risen year-over-year thanks to its subsidiary. Vivendi noted that the "exceptional profitability" of brands like Call of Duty: Modern Warfare 3 and Activision's strong 2011 financial performance pushed the parent company's bottom-line up.
The company's total revenue for 2011 was flat at €28.81 billion ($38.4 billion), with net profits rising 22 percent to €2.68 billion ($3.57 billion). Vivendi telecom group SFR took a hit in the mobile business, and music brand Universal Music Group had a 4.6 percent drop in revenue.
"We have two growth engines: videos games and GVT, but we've also got a lot of competition and price drop in France in telecoms and television," chief executive officer Jean-Bernard Levy said on a investors conference call according to Reuters. "Those are burdens which will weigh on Vivendi for two years."
SFR's ongoing battle with competitors like France Telecom SA and Illiad will hurt the company for the next two years.
"The excessively favorable conditions granted to the new mobile operator by the regulator, the state and the incumbent operator lead SFR to reconsider very carefully its commercial offers and its cost base," Vivendi said in a statement. "These efforts to adapt will place increased pressure on Vivendi's results in 2012 and 2013."