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First-quarter 2012 results in line with annual forecasts

Vivendi’s first quarter 2012 results were well received by the market as evidenced by the 2.01% increase in Vivendi’s share price on May 15, 2012, after their publication.

Adjusted Earnings Before Interest and Income Taxes (EBITA) amounted to €1.62 billion as of March 31, 2012, down 4.9% compared to the first quarter 2011, but up 1.9% excluding Activision Blizzard.

Universal Music Group and GVT recorded strong performances, generating EBITA increases of 47.8% and 28.9% respectively. Activision Blizzard’s decline in EBITA is due to its video-game launch schedule and specific accounting principles requiring that revenues and costs associated with games with an online component be deferred over the estimated period of use. The balance of the deferred operating margin was €573 million as of March 31, 2012.

SFR stood up well to the new, highly competitive French mobile market – which was impacted by the addition of a fourth operator on January 10, 2012 – with its mobile customer base declining by only 274,000 subscribers. In this changing mobile market, SFR’s business conditions and the customer’s tchurn were close to their previous levels. At the end of April 2012, the mobile customer base was up compared to the end of March 2012.

The publication of first-quarter 2012 results confirmed Vivendi’s 2012 outlook for all businesses and for the group (Vivendi even raised the EBITA target for Activision Blizzard to more than €750 million versus the prior forecast of about €750 million). For the full year, Vivendi expects to generate adjusted net income above €2.5 billion and to distribute about 45%-55% of adjusted net income in cash.

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