After reporting stronger than expected third quarter revenues
, officials from French media and telecommunications company Vivendi Universal have, in keeping with traditional French business practices, reported details of the company’s third quarter profits.
The company as a whole saw a 35 percent drop in third quarter net profits to €647 million ($756m) for the three months to September 30th. Results from the previous year were helped by a €388 million ($453m) tax gain, which, if ignored, gives only a 17 percent drop.
The previously troubled game division, which the company had earlier been attempting to sell off, saw revenues increase by 88 percent to €158 million ($189m), thanks to the global success of Blizzard’s massively multiplayer role-playing game World of WarCraft
. The game’s success has also had a positive effect on operating profits, which rose to €7 million ($8 million), from a loss of €32 million ($37m) at the same time last year.
The upturn in profits were also attributed to strong sales for The Incredible Hulk: Ultimate Destruction
and the North American success from distributing Novalogic’s Delta Force: Black Hawk Down
and Empire Interactive's racing game FlatOut
. The company claims that these improvements integrated increased product development costs linked to recently acquired studios such as Swordfish
and Radical Entertainment
Vivendi Universal as a whole is now maintaining its previous full year guidance of €1.88 billion ($2.2 billion) net profit, according to its official financial announcements.