Vivendi Games posts €58 million operating loss for Q3

The performance of Vivendi Universal Games has continued to decline, with the company's third quarter results revealing a massive â'¬58 million operating loss and falling revenues.

The company's operating loss compares with a loss figure of only â'¬2 million in the same quarter last year, and contributes to a year to date loss figure of â'¬110 million - as against a profit of â'¬37 million for the first nine months of 2002.

This loss is set against the backdrop of a massive slide in revenues, with only â'¬77 million in revenue recorded in the third quarter, a drop of some 54 per cent from the â'¬166 million recoded in the same three months last year.

Vivendi's financial statement gives little insight into the reasons for the decline, stating only that "lower gross margin on the revenue decline was the most significant contributor to the profit shortfall."

Vivendi Universal expects the performance of its games division to continue to be weak throughout the fourth quarter of the year, but states that a restructuring plan is currently being implemented at the division which should hopefully return it to a firmer footing next year.

In terms of the overall picture, Vivendi Universal surprised analysts by posting a net profit of â'¬131 million for the third quarter, on operating income of â'¬896 million - up 43 per cent on last year, on a pro forma basis. The strong performance of the company's telecoms interests, and of certain media businesses such as Canal Plus and VUE, is credited with lifting the group as a whole into profit.