Vivendi Universal Reports 6% Rise in Annual Revenue

Strong results from telecommunications helped boost French media giant Vivendi Universal’s annual revenue 6% to about $66 billion in 2002, offsetting declines in music and theme park sales.

But fourth-quarter revenue, handicapped by weak results from the film and theme park operations, rose just 1% to about $15.3 billion.

Sales figures include results from the Paris-based company’s Vivendi Environnement water and sewage unit, as well as its extensive entertainment and theme park operations in France and the U.S. The results come as Vivendi -- under new management after the ouster of former Chief Executive Jean-Marie Messier last year -- is scrambling to sell business assets to lighten its debt load.

The company abandoned plans last week for a stock offering of its pay-TV unit, Canal Plus. But Vivendi said Monday that it planned to auction off its art collection, which includes works by Mark Rothko, Rodin, Picasso and Walker Evans.

Excluding businesses that have been sold -- principally the water and sewer unit -- Vivendi said annual sales rose 11% to about $26.3 billion, in line with analyst expectations. Fourth-quarter sales, without the sold-off assets, increased 5% to $7.8 billion.

Vivendi’s music division, the conglomerate’s single biggest entertainment asset, posted a 4% drop in sales to about $5.9 billion for the year. Vivendi attributed the decline to currency changes, saying that on a constant currency basis, Universal Music Group sales fell by just 1% in a cratering music market.

Fourth-quarter music sales dropped by 2% to about $2 billion. On a constant currency basis, however, music revenue increased 4%, powered by such stars as Eminem and Shania Twain, the company said.

Vivendi said it planned to release complete annual earnings information March 6.