Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: TMFTwitty Big funky green star, 20000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121  
Subject: The New Vivendi Date: 12/3/2003 3:52 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
http://www.fool.com/News/mft/2003/mft03120306.htm?ref=btp

The New Vivendi

By Tom Taulli
December 3, 2003

On the big screen, Vivendi Universal SA (NYSE: V) would be an odd mixture of comedy, drama, tragedy, and horror. Wait a minute, the company isn't even in showbiz anymore. It's in telecom, I think.

Such is the existential life of a French conglomerate. So far, however, these guys have done a tremendous job of turning the company around, as evidenced by yesterday's earnings announcement.

In fact, management indicated that more euros came in the door than flew out; that is, Vivendi earned approximately $157 million.

A joint venture with Vodafone Group (NYSE: VOD) stole the show. Together, the two firms sold 100,000 handsets in a single month; is it any surprise Vivendi saw growth in telecom units Cegetel and Maroc Telecom of Morocco? Pay television unit Canal Plus is another bright spot, while the music division remains a drag.

On the earnings call, management characterized liquidity issues as "way behind us." As evidence, we will no longer be treated to that familiar "liquidity" PowerPoint slide in future presentations. Good riddance.

And while hurdles remain in Vivendi's quest to unload its entertainment assets on the NBC network -- a unit of General Electric (NYSE: GE) -- on the balance, things appear to be proceeding nicely. The deal is slated to close in the middle of next year.

Management warned investors not to extrapolate the third-quarter results into the fourth quarter, but this sounds overly cautious. Remember, the company's stated philosophy is "underpromise and overdeliver" -- a notion completely at odds with its former leader, Jean-Marie Messier.

There's work to be done, but this new-look Vivendi is worth watching.

______________
Tom Taulli is the author of six books on investing, such as Investing in IPOs (Bloomberg Press). You can reach him at tom@taulli.com.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement