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Game Sales Still Key For Vivendi Profits
by David Jenkins [PC, Console/PC, Mobile Console]
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September 1, 2008
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Profit hit €92 million ($134m) for Vivendi SA in its second quarter, as World of Warcraft remains one of the major contributors to the media giant’s business.
Despite a fall in profits from the Universal Music Group, revenue was up 12 percent to €667 million ($975m) - with the company’s French telecom business also enjoying positive results.
The majority shareholder of Activision Blizzard reported that World of Warcraft was still showing sustained growth, with a global subscriber base of almost 11 million. Subscriber numbers increased by 1.8 million during the first half of the year.
Vivendi Games revenues were up 17.9 percent on a constant currency basis to €223 ($326). World of Warcraft maker Blizzard Entertainment’s numbers were up 16 percent to €185 million ($270 million). Revenues for Sierra were described only as "slightly higher" than last year.
"Vivendi’s performance during the second quarter 2008 reflects the quality and dynamism of our business units in a tighter economic environment," said chairman Jean-Bernard Lévy.
"Vivendi closed two strategic transactions: the acquisition of Neuf Cegetel by SFR and the creation of Activision Blizzard, the global leader in video games publishing, in which Vivendi holds a 54 percent stake."
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With Blizzard's MMO making the bulk of Vivendi growth, that means they'll take the bulk of the responsibility when growth stops (due to oversaturation). The investors won't care why the growth stopped so they'll try to axe as many people at the top as they can to cut costs and try to resume growth. When that doesn't work they'll really freak out and try to fire even more. The company will still be making a ton of money while all this is happening. Yay for shareholders. If WoW 2 doesn't make twice as much...everyone gets new management!