European telecoms and entertainment group Vivendi had a good 2011 but warned that 2012 and 2013 will be more difficult.
Results in 2011 benefited from strong growth at its Brazil operator GVG and its profitable video game publisher Activision Blizzard, maker of the massively multi-player online role playing game, World of Warcraft.
The French company said that it will suffer from a "significant" tax increase as well as the tough competition from its new rival in France Free Mobile.
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In this environment, the company's president Jean-Bernard Lvy said that the next two years would be hit hard by the aforementioned factors and that group earnings would not return to growth until 2014 .
For 2011, sales fell 0.2% to €28.81bn, although it did rise 0.5% in constant currencies. Adjusted operating income reached a record €2.95bn thanks to a 9.4% from 2010 levels. Net profit rose 22% to €2.68bn.
Lastly, Vivendi announced a €1 per share dividend and will also pay out a 1x30 share dividend. For 2012, it expects to pay a dividend equivalent to 45%-55% of adjusted operating income.
Vivendi currently leads the decliners on the CAC40 as it plunges 8% to €14.83.
MD
