Vivendi to tackle debts by selling assets

Vivendi Universal has announced consolidated revenues of €30

Vivendi Universal has announced consolidated revenues of €30.6 billion, an increase of eight per cent for the first half of this year.

Operating income also increased 8 per cent to €2.4 billion in the first half on a comparable basis, including Vivendi Environment.

However, as of June 30th the French GAAP debt (calculated as gross debt minus cash & cash equivalents) was approximately €35 billion and the company said it was committed to raising at least €10 billion through asset sales during the next two years, €5 billion euros of which will be completed during the next nine months.

"My primary objective is to create as much value for shareholders as possible by focusing on three priorities," Mr Jean-Rene Fourtou, Chairman and Chief Executive Officer of the company said in a statement.

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"First, reducing debt. Second, improving the profitability of the businesses. Third, determining a long-term strategy for Vivendi Universal: this process is well advanced and the Board will decide on the long-term strategy at the September 25 board meeting."

Mr Fourtou also proposed to cut losses by: selling businesses; cutting the cash drain of the company, mainly the non-French activities of the Canal+ Group, the Internet activities and the huge level of corporate overhead and enhancing the cash flows of the ongoing businesses.