Why Bolloré can say thank you to Vivendi – Challenges.fr

It’s Easter in advance for Vivendi’s shareholders. And the first of them, Vincent Bolloré, takes advantage of widely, too, from reading the 2015 results of the Bolloré group, published Thursday, March 24 evening.

The group is supported by “the results transport and logistics activities, “the statement said. But there is a good effect Vivendi, far more important in these results. The first impact is seen on the financial result rose from 85 million euros in losses in 2014, 187 million profit. In fact, the group received 325 million euros in dividends in 2015 net of Vivendi, for € 44 million in 2014. The new figure takes into account both the increase in Bolloré Group’s interest in Vivendi, range from 5.1% to 14.4%, and the very generous compensation Vivendi shareholders, whose dividends were downright tripled.

at first glance, one might say that the net result of Bolloré in 2015, which increased by 161%, to 564 million euros, thus relies 58% on the dividend of Vivendi. But it is obviously necessary to consider another “Vivendi effect”: the net debt of the group, who leapt from $ 1.7 billion in late 2014 to 4,300,000,000 in 2015, linked to the EUR 3 billion to become the reference shareholder of Vivendi. Impact on net income, negative one, which must be close to a hundred million, because of the additional financial costs.

The consequence of conducted battle 2015

still, the impressive increase in profit of Bolloré (350 million more), the two-thirds are indeed of Vivendi’s dividend, which blazed. What causes this sudden profusion board? A influence, if decisive, Vincent Bolloré, its president? “Initially, it was not his idea, understands Charles Pinel, Partner Proxinvest, a consulting firm to investors. He wanted to keep a lot of cash for possible future acquisitions. “

Rather see the result of a battle waged in 2015 by the US activist fund PSAM, which had demanded the repayment of more dividends. It was he who demanded that the triple dividend. This is his trademark: “PSAM specializes in equity investment in companies having achieved significant disposals, and featuring a dormant cash” recalls Charles Pinel. Indeed, over three years, Vivendi had been a buxom cash, selling to SFR Numericable to 17 billion euros and Morocco Telecom and GVT (9 billion), and finally the Activision video game publisher (8 billion). And so, “Vincent Bolloré has yielded to the demands of PSAM, the more easily it profited him well,” adds Jean-Baptiste Sergeant, an analyst at MainFirst

The result:. 4 billion euros will be spent by Vivendi to the dividend for the year 2015, which will be added € 1.3 billion of dividends already planned for the year 2016. a total of € 5.3 billion between these two exercises . To which we must add “1.6 billion that Vivendi used to repurchase its own shares,” said Jean-Baptiste Sergeant. Enough to go from Vincent Bolloré in the communication group. And do not make him regret his investment that is extremely interesting.