WoW puts Vivendi back on track

Speaking in Paris today about the half year financial reports for Vivendi, CEO Jean-Bernard Levy praised the long suffering games division for its contribution to increased operating profits.

Vivendi Universal Games has been the least profitable division of the group for some time, operating in the red and depleting the overall company resources. As the new figures were announced, Levy was clearly delighted by the change in VUG, which has played an integral part in the company's return to profitability. Levy stated that the operating profit for the first half of 2005 was EURO 1.99 billion - an increase of 34 percent compared with last year's results.

Showering praise on the games division in his speech, Levy stated "In this first half of 2005, I highlight the vitality of our businesses and the impressive series of successes...World of Warcraft, with four million players at end of August 2005, has been a worldwide success and enabled Vivendi Universal Games to return to profitability."

Although Vivendi Universal Music Group showed the most positive financial results in the group with a rise of nearly 90 percent in operating profits to EURO 106 million, the change in fortune for VUG can only serve to help reverse the disastrous image of Vivendi and assure its future success.

Last year, VUG lost EURO 120 million in the second quarter. This year, things are looking very different, with a profit of EURO 2 million and an increase of 76 percent in sales to EURO 125 million.

Levy stated that the company was now very much on track to beat its initial forecast for the full 2005 fiscal year.