May 18, 2018 / 7:23 AM / 5 days ago

Vivendi shares down after Q1 sales and UMG outlook disappoint

PARIS, May 18 (Reuters) - Vivendi shares fell on Friday after reporting first quarter results that some analysts said came below expectations, and on some disappointment over a lack of more precise details on plans for its UMG music arm.

Vivendi shares were down 1.3 percent in early session trading.

Late on Thursday, Vivendi reported higher first-quarter sales and said it would review a possible change in the shareholding structure of its wholly-owned UMG music division, following two years of speculation about an potential listing.

“Group revenues of 3.11 billion euros came in 1-2 percent below consensus mainly due to forex. Headline organic growth was 3.3 percent, bang in line with expectations,” said Exane BNP Paribas analysts, who kept a “neutral” rating on the stock.

“No timeline (on UMG IPO) was provided but we think this is a long process and an IPO is unlikely to materialise this year (if at all),” added Exane BNP Paribas.

Vivendi also resumed hostilities over Telecom Italia on Thursday with a threat to call a new shareholder meeting to change the Italian company’s board, two weeks after it lost control to U.S. activist fund Elliott. (Reporting by Sudip Kar-Gupta; Editing by Dominique Vidalon)

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