1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Vivendi's third-quarter trading report was relatively positive as the firm begins its life without the benefit of Universal Music. While we expected a strong bounceback in results at Havas, we were impressed by the organic growth at Canal+. We are maintaining our no-moat rating and our fair value estimate of EUR 13.
Vivendi's transformation into a pure-play media firm was completed in 2014, but recent acquisitions and the spinout of Universal Music Group have again changed the firm. The company now operates multiple divisions with one very large core segment: Canal+, a leading producer and distributor of film and TV content in France, produces over 80% of revenue. It also owns Havas, the world’s sixth-largest ad agency holding company; Editis, a French-language book publisher; Gameloft, a mobile game publisher; and minority stakes in multiple companies in Europe.
