Financière de l'Odet : Financial information for the third quarter
2020
Financière de l'Odet
Group activities show strong resilience
in third quarter 2020
despite 3% decline in
revenue
- Revenue in the third quarter 2020: €5,915 million
- -3% at constant scope and exchange rates
- -4% as reported
- Revenue at the end of September 2020: €17,527 million
- -4% at constant scope and exchange rates
- -2% as reported
Revenue for the third quarter
2020
At constant scope and exchange rates, the
Group’s revenue for the third quarter 2020 was down 3% to €5,915
million. This change mainly includes:
- a 2% increase in the transportation and logistics business
driven by freight forwarding, mainly due to exceptional air freight
operations, despite the contraction in logistics activities in
Africa and the impact of the end of the Douala terminal (DIT)
concession in Cameroon;
- the decline in oil logistics (-38%) primarily attributable to
the fall in oil product prices and volumes;
- the growth in the communications business (+1%), attributable
to Vivendi which benefited from growth at UMG (+6%), the Canal+
group (+1%) and Editis (+10%);
Revenue as reported was down 4% compared to the
third quarter of 2019, due to a €132 million negative foreign
exchange impact related to the strengthening of the euro
(particularly versus the US dollar in the third quarter), which
absorbed the positive changes in scope related primarily to the
consolidation of M7 at the Canal+ group.
Revenue at the end of September
2020
At constant scope and exchange rates, revenue at
the end of September 2020 fell 4% to €17,527 million.
Reported revenue was down 2%, including €340
million from changes in consolidation scope (consolidation of
Editis and M7 at Vivendi and deconsolidation of Bolloré Ports
France and Wifirst) and a €95 million negative foreign exchange
impact (reflecting a general but contrasting increase in value of
the euro).
Change in
revenue by business |
(in € millions) |
3rd quarter |
9-month total |
|
|
2020 |
2019 |
Reported |
Organic |
2020 |
2019 |
Reported |
Organic |
|
|
|
growth |
growth |
|
|
growth |
growth |
Transportation and Logistics |
1,420 |
1,462 |
-3% |
+2% |
4,276 |
4,436 |
-4% |
-1% |
Oil
Logistics |
401 |
645 |
-38% |
-38% |
1 447 |
1
923 |
-25% |
-25% |
Communications |
4,021 |
3,969 |
+1% |
+1% |
11 595 |
11
320 |
+2% |
-1% |
Electricity Storage and Systems |
65 |
85 |
-23% |
-7% |
187 |
244 |
-23% |
-8% |
Other (agricultural assets and holdings) |
8 |
7 |
+8% |
+8% |
21 |
24 |
-12% |
-13% |
Total |
5 915 |
6 169 |
-4% |
-3% |
17,527 |
17,949 |
-2% |
-4% |
At constant scope and exchange rates, compared
to the first nine months of 2019, the main sectors changed as
follows:
- Transportation & Logistics, Oil
Logistics:
- Revenue for the Transportation and Logistics business was down
1%, primarily due to the reduction in logistics and handling in
Africa and the termination of the DIT port concession in Douala
(Cameroon) at the end of 2019, partly offset by excellent
performances at port terminals, in particular Abidjan Terminal in
the Republic of Côte d’Ivoire, Freetown Terminal in Sierra Leone,
Owendo Terminal in Gabon and Conakry Terminal in Guinea.
Conversely, international freight forwarding
revenue was up sharply due to continuing sustained growth in air
freight largely offsetting the decline in sea freight.Lastly, rail
activity was down following a landslide which halted traffic and
the suspension of hydrocarbon transportation between the Republic
of Côte d’Ivoire and Burkina Faso lasting over a month.
v Revenue for Oil Logistics was down 25%
in view of the fall in the price of oil products and, to a lesser
extent, volumes over the first nine months of 2020.
§ Communications
(Vivendi): Revenue amounted to €11,595 million, down 1% at
constant scope and exchange rates and up 2.4% as reported compared
to the same period in 2019. It benefited from growth in revenue
from UMG, driven by music streaming platforms, Canal+ group,
through significant international development, and Editis, which
confirmed the rebound that began at the end of lockdown. However,
this growth was offset by the decline in Havas Group and Vivendi
Village revenue, impacted by the fallout of the Covid-19
pandemic.
§ Electricity Storage and
Systems: Revenue from industrial activities (electricity
storage, plastic films, dedicated terminals and systems) was down
8% compared to the first nine months of 2019. These business
activities were impacted by the health crisis, due to plant
closures in particular as well as the decline in the air freight
sector, a key market for IER. Conversely, sales of batteries were
up sharply, driven by the contract with Daimler, while the Bluebus
order book stood at 111 12-meter buses at the end of September.
Third quarter highlights and recent
events:
§ Opening of UMG’s share capital
Vivendi successfully completed the first phase
of the opening of UMG’s share capital. On March 31, 2020, the Group
finalized the sale of 10% of the share capital of UMG to a
Tencent-led consortium based on an enterprise value of €30 billion
for 100% of UMG.
The consortium, which is led by Tencent and
includes Tencent Music Entertainment and other financial
co-investors, has the option to acquire, on the same valuation
basis, up to an additional 10% of the share capital of UMG until
January 15, 2021.
This transaction is complemented by a separate
agreement allowing Tencent Music Entertainment to acquire a
minority stake in the capital of the UMG subsidiary owning its
Greater China operations.
Following the success of this significant
strategic transaction, Vivendi is pursuing its plan to sell
additional minority interests in UMG with the assistance of several
mandated banks. An IPO is planned for 2022.
The cash generated by these transactions may be used by Vivendi
to reduce its financial debt and to finance a significant share
buyback program and acquisitions.
§ Lagardère SCA
At October 19, 2020, Vivendi holds 28.3% of the
share capital and 21,5% of the voting rights of Lagardère SCA.
Following the disappointing results announced by
Lagardère SCA, on August 10, 2020 Amber Capital and Vivendi signed
a shareholder agreement, despite their differences. As such, they
launched an initiative to guarantee each party minority
representation on the Lagardère SCA Supervisory Board, i.e. three
members for Amber Capital and one member for Vivendi. They also
sought to stabilize their shareholding base by granting each other
a right of first offer and a right of first refusal for a five-year
period.
As the Lagardère SCA Supervisory Board and
management refused the proposals of its largest and second largest
shareholders respectively, Amber Capital and Vivendi, in early
September 2020 the said companies brought a request before the
Paris Commercial Court to convene a General Meeting.
On October 14, 2020, the Court decided not to
uphold the request. Vivendi, which remains confident in the merits
of its approach, will appeal this decision.
§ MultiChoice Group Ltd
On September 29, 2020, the Canal+ group exceeded
the 5% threshold of the share capital of MultiChoice Group Ltd,
Africa’s leading pay-TV provider based in South Africa. This
acquisition, a long-term financial investment, is testament to the
confidence that the Canal+ group and its shareholder Vivendi have
in the outlook for MultiChoice and Africa as a whole, a continent
to which they are deeply committed.
§ Vivendi share repurchase
program
Since January 1, 2020, Vivendi has acquired
58,37 million of its own shares (4.92% of its share capital),
representing an amount of €1,368 million, including 23,02 million
shares under the previous share repurchase program and 35,35
million shares under the current one.
As of October 19, 2020, Vivendi held 62.3
million treasury shares representing 5.25% of the share capital,
including 46.2 million shares to be canceled, 7.5 million to cover
performance share plans, and 8.6 million to cover disposals to
employees or corporate officers (employee shareholding
transactions).
§ Tender offer on Blue Solutions by
Bolloré
The tender offer on Blue Solutions at a price of
€17 per share, which took place between May 29 and July 8, 2020,
was finalized. Following the mandatory squeeze-out that took place
on July 15, 2020, Bolloré now holds 100% of the share capital of
Blue Solutions. The value of the securities acquired represent an
amount of €110 million.
§ Sale of BluePointLondon Ltd
In September 2020, IER entered into an agreement
to sell to Total its subsidiary BluePointLondon Ltd, which has
developed and operates a network of 1,600 electric vehicle charging
stations in London. This sale should be completed in the next few
months.
§ Impact of the health crisis
Although the impact is more severe for certain
countries and business lines than for others, the Group has shown
resilience and adaptability in continuing to serve its customers to
the best of its ability whilst lowering costs to preserve its
margins. Transportation and Logistics business continues to benefit
from exceptionally high freight transport rates, which partly
offset the slowdown in the usual flows. Communications activities
have shown good resilience, particularly music and pay-TV. However,
other activities have been impacted by the health crisis as
anticipated.
The Group is conducting a careful assessment of
the current and potential consequences of the crisis. At this stage
it is difficult to determine the impact of the crisis on full-year
results. The advertising and live performance sectors are
particularly likely to suffer long-term impacts. However, the Group
remains confident in the resilience of its main business lines. It
is doing everything possible to ensure the continuity of its
activities and to serve and entertain customers and audiences as
well as possible, while following instructions from the authorities
of each country where it is established.
§ Group liquidity
As of September 30, 2020, the Group’s liquidity
position, including undrawn confirmed lines and liquid investments,
represented €2.9 billion for Financière de l’Odet and €8.6 billion
including Vivendi, up slightly from June 30, 2020.
Change in revenue per quarter |
(in € millions) |
1st quarter |
2nd quarter |
3rd quarter |
|
2020 |
2019 (1) |
2019 |
2020 |
2019 (1) |
2019 |
2020 |
2019 (1) |
2019 |
Transportation and Logistics |
1,394 |
1,468 |
1,483 |
1,462 |
1,448 |
1,491 |
1,420 |
1,394 |
1,462 |
Oil
Logistics |
631 |
669 |
665 |
415 |
617 |
613 |
401 |
647 |
645 |
Communications |
3,868 |
3,706 |
3,458 |
3,706 |
4,022 |
3,893 |
4,021 |
3,995 |
3,969 |
Electricity Storage and Systems |
65 |
63 |
75 |
58 |
71 |
85 |
65 |
70 |
85 |
Other (agricultural assets and holdings) |
8 |
8 |
8 |
6 |
9 |
8 |
8 |
7 |
7 |
Total |
5,966 |
5,914 |
5,690 |
5,646 |
6,166 |
6,090 |
5 915 |
6,113 |
6 169 |
(1) At constant scope and exchange rates
All amounts are expressed in millions of euros and rounded to
the nearest decimal.As a result, the sum of the rounded amounts may
differ slightly from the reported total.
- 2020 10 20 Fin Odet CAT3 GB
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