Vivendi rejects breakup offer as earnings exceed expectations

Vivendi Games has surprised analysts by posting first quarter earnings of EURO 23 million, an increase of 109 per cent over the same period last year - and has raised its forecast for the rest of 2006.

Net income for the period stood at EURO 707 million, an increase of 41 per cent. A spokesperson said that "Each of the group's business units is expected to enjoy robust growth in operations and profits'' during the rest of 2006, and that as a result, the average growth forecast for the group's earnings operations has been upped to between 8 and 10 per cent.

Vivendi's success was once again attributed to the continuing popularity of its hit MMORPG in a financial report which reads: "This dramatic improvement was driven by a growth in revenues, with an increased proportion relating to the higher margin of World of Warcraft business." WOW now has more than five million subscribers, including more than one million in Europe.

News of Vivendi's earnings has emerged alongside reports that the company has received breakup offers. According to Reuters, shareholder Sebastian Holdings offered up to EURO 33.5 per share, valuing the company at EURO 40 billion, but Vivendi rejected the deal.