Vivendi Full Year 2006 Revenues Reach EUR 20 billion




    Note to readers: Vivendi provided preliminary, unaudited revenue
information for the fourth quarter and the full year of 2006 on an IFRS basis
in accordance with European regulatory requirements.

    PARIS, January 31 /CNW/ - Full Year of 2006 Revenues

    Vivendi's as published revenues total EUR 20,044 million for the full
year 2006 compared to EUR 19,484 million for the full year of 2005, an
increase of 2.9%.

    On a comparable basis(1), revenues amount to EUR 20,007 million for the
full year 2006 compared to EUR 19,374 million for the full year of 2005, an
increase of 3.3% (+3.3% at constant currency).

    Fourth Quarter of 2006 Revenues

    Vivendi's as published revenues total EUR 5,545 million for the fourth
quarter of 2006 compared to EUR 5,479 million for the fourth quarter of 2005,
an increase of 1.2%.

    On a comparable basis(1), revenues amount to EUR 5,545 million for the
fourth quarter of 2006 compared to EUR 5,478 million for the fourth quarter of
2005, an increase of 1.2% (+2.6% at constant currency).

    Universal Music Group

    Full year of 2006:

    Universal Music Group's revenues of EUR 4,955 million were 1.3% above
last year (1.5% on a constant currency basis) driven by strong digital sales
growth, higher license income in the U.S. due in part to legal settlements and
strong sales growth in the U.K. and Japan.

    Music Publishing revenues grew 3.3% on a constant currency basis. Digital
sales were EUR 477 million with strong growth in all markets and sectors.
Digital revenues were up 84% versus last year and represented 9.6% of total
revenues.

    Best sellers for the year included new releases from U2, Andrea Bocelli,
Snow Patrol, Nelly Furtado and The Killers in addition to strong carryover
sales from The Pussycat Dolls.

    Fourth quarter:

    Universal Music Group's revenues of EUR 1,657 million declined 1.5%
versus last year due to adverse currency movements. On a constant currency
basis, revenues increased 1.7% with strong digital sales and higher license
income (including the settlement of the Kazaa case) countering lower physical
product sales primarily in the U.S.. Sales in Europe were very strong
reflecting market share gains particularly in the U.K. and the Netherlands and
the acquisition of Vale Music in Spain.

    Music Publishing revenues grew 2.4% on a constant currency basis. Best
sellers were new releases from U2, Jay Z, Gwen Stefani and Akon. Other best
sellers were the UK's Take That and Snow Patrol.

    Canal+ Group

    Full year of 2006:

    Canal+ Group's 2006 revenues amounted to EUR 3,630 million. On a
comparable basis(2), revenues were up EUR 257 million, or +7.7% compared to
2005.

    Revenues from pay-TV operations in France were up EUR 244 million, or +9%
compared with 2005, mainly due to increased subscriptions of the Group's
attractive offers in a very competitive market, as well as increased revenue
per subscriber.

    The Group's total portfolio as of December 31, 2006, included over 8,6
million subscriptions (individual and collective, in France and overseas) for
its pay-TV offers. Net additions over the year equalled 350,000 subscriptions,
with 1.155 million gross additions.

    Total subscriptions to Canal+ at the end of the year reached 5,14
million, which represents a net increase of 76,000 compared with year-end
2005. The proportion of Canal+ Le Bouquet subscriptions reached 61% of
complete Canal+ portfolio, up from 52% a year ago. Canal+ recruitments grew
year on year, reaching 646,000 in total, even though subscriptions sales in
2005 were the best since 1987. The Canal+ churn rate stands at 11.95%, still
among the lowest in Europe.

    CanalSat total subscriptions were 3.46 million by year-end, which
represents a net increase of 272,000 compared with 2005. CanalSat gross
additions hit 510,000 subscriptions, up 6% compared with 2005. Churn rate was
10.6%.

    Revenues from Canal+ Group's other operations grew +2% compared to 2005.
StudioCanal posted lower revenues (mainly due to decreased income from the
Working Title deal) despite good performances in France, where the company
ranked third best movie distributor thanks to the release of Indigene and
Prete-moi ta main. This overall decrease was offset by higher advertising
revenues from i(greater than)TELE and subscription portfolio growth in Poland.

    Since January 4, 2007, Canal+ Group's pay-TV operations include TPS,
whose portfolio ended the year with 1.44 million subscriptions.

    The total subscriptions of Canal+ Group as of today stand at more than 10
million.

    Fourth quarter:

    Canal+ Group's revenues amount to EUR 918 million. On a comparable
basis(2), revenues were up EUR 43 million, or +4.9% compared with the fourth
quarter of 2005.

    Revenues from pay-TV operations in France were up +6% compared with 2005.
This increase is mainly due to the growth of Canal+ and CanalSat subscription
bases. In December, Canal+ achieved its best month ever in terms of
subscription sales.

    Revenues from Canal+ Group's other operations are stable compared to the
fourth quarter of 2005.

    SFR

    Full year of 2006:

    SFR revenues slightly decreased by 0.1% to EUR 8,678 million compared to
the same period in 2005 (down 0.2% on a comparable basis (3)). Network
revenues were up 0.4% on a comparable basis at EUR 8,254 million. Despite
ongoing growth in voice usage on mobile per customer (which grew over 10%),
the cut of regulated tariffs imposed by the regulator, coupled with strong
competition, weighed very strongly on the growth of French mobile market.

    Favorable effects of the increase in customer base along with the growth
in "voice" and "data" usage were more than offset by, firstly, the cut in the
price charged to customers and, secondly, the cut of regulated tariffs (a 24%
cut of mobile voice termination rates at the beginning of 2006 and a 19% cut
of SMS termination at the beginning of 2006 followed by an additional 30% cut
mid-September).

    SFR ARPU (4) decreased by 6.2% to EUR 455 at the end of December 2006
(versus EUR 485 at the end of December 2005). Excluding the impacts of the
regulated tariff cut, SFR revenues would have been up by 4.3%.

    In 2006, SFR added 685,000 net new customers, taking its registered
customer base to 17.883 million(5), a 4.0% increase versus last year. The
contract customer base grew by 6.8% year-on-year to 11.618 million (738,000
net additions), leading to an improved customer mix of 1.7 percentage point in
one year. 3G customer base reached 2,686 million at the end of December 2006,
compared to 1,003 million at the end of December 2005.

    Average voice usage of SFR customers (AUPU) (6) continued its strong
growth of 10.5% on a year-on-year basis to reach 327 minutes per month at the
end of December 2006.

    Net data revenues improved significantly mainly thanks to interpersonal
services (SMS and MMS), contents (music, TV-Videos, games) and corporate
segment operations. Net data revenues represented 12.9% of network revenues at
the end of December 2006, compared to 11.7% in 2005. In 2006, the data
revenues grew of 10.4%, despite the cut of regulated tariffs as mentioned
above.

    The number of text messaging (SMS) sent by SFR customers grew by 17.4% on
a year-on-year basis to 6.3 billion and multimedia messaging services (MMS)
grew by 70.8% on a year-on-year basis to 168 million.

    Other data services strongly increased: SFR Music portal is one of the
top 3 leading legal downloading platforms in France, with almost 4 million
downloads in 2006, compared to 655,000 in 2005; and more than 14 million
TV/Video and 4 million video were downloaded in 2006, with more than 600 games
available.

    For corporate services, 2006 was marked by strong sales mainly with the
69% growth in PC Mobile Connect Card and the 86% growth in Blackberry(R)Mobile
Messaging services.

    Fourth quarter:

    SFR revenues declined by 1.4% compared to the fourth quarter of 2005 to
EUR 2,181 million (down 2.1% on a comparable basis). Network revenues
decreased 0.9% to EUR 2,067 million.

    The strong cut of regulated tariffs as of January 1, 2006 and
mid-September 2006 offset favorable effects of the increase in customer base
and the growth in "voice" and "data"usage. Excluding the impacts of the
regulated tariff cut, SFR revenues would have been up by 2.6% in the fourth
quarter of 2006.

    Maroc Telecom

    Full year of 2006:

    Maroc Telecom revenues of EUR 2,053 million increased by 10.4% (+10.2% at
constant currency) due to the good performance of all its business activities.

    2006 mobile revenues grew by 15.3% to EUR 1,333 million (+15.1% at
constant currency).

    The strong growth of the customer base(7) (8) reaching 10.7 million
customers (+30% and a net increase of 2.47 million customers over the year,)
explains the mobile revenues growth.

    The blended ARPU(7) (9) reached 10.1 euros (-9.3% compared to December
2005 at constant currency) due to the strong increase of the customer base and
the decrease of the average price of communication.

    With the sharp increase of the customer base and the decrease of the
access fees, the churn rate(7) reached 20% (+8 points year on year).

    2006 fixed and internet revenues grew by 5.8% to EUR 1,145 million (+5.6%
at constant currency).

    This good performance was achieved thanks to the dynamism of the public
telephony segment (revenue grew by almost 15%), to the growth of the incoming
international traffic (+11%), to the continuing success of the broadband
activity and to the development of data services to business and operators
with revenue growing by 13%. In this context, the voice average monthly
invoice increased by almost 3%.

    The fixed customer base(7) decreased to 1.266 million lines (-5.6%
compared to December 2005). The ADSL customer base(7) experienced a strong
growth and almost reached 384,000 lines (+59% compared to December 2005).

    To serve its existing customers and attract new ones, Maroc Telecom
launched in September 2006 new unlimited offers on the fixed telephony
segment, which allow customers to call all the local and national Maroc
Telecom fixed numbers with no limit of time. The success of these offers led
to the stabilization of the customer base over the last quarter.

    Fourth quarter

    Maroc Telecom revenues of EUR 499 million increased by 4.0% (+5.5% at
constant currency). An evolution of EUR 10 million is due to a one-off
reassessment of the inactivated scratch prepaid cards at Maroc Telecom
dealers. Excluding this non-recurring item, revenues actually increased by
7.6% at constant currency.

    Mobile revenues grew by 8.8% to EUR 322 million (+10.4% at constant
currency) due to the impact of the year end promotions and the EUR 10 million
reassessment of the inactivated prepaid cards at Maroc Telecom dealers.
Excluding this last non-recurring item, revenues increased by 13.8% at
constant currency.

    Fixed and internet revenues grew by 2.5% to EUR 289 million (+3.7% at
constant currency).

    Vivendi Games

    Full year of 2006 :

    Through the full year 2006, Vivendi Games' revenues of EUR 804 million
were 25.4% higher than the prior year (up 26.1% on a constant currency basis).
This increase was primarily driven by the continued worldwide success of World
of Warcraft, the critically acclaimed subscription-based, massively
multiplayer online role-playing game (MMORPG) from Blizzard Entertainment.

    During 2006, World of Warcraft continued its strong growth in all
regions, reaching more than 8 million players worldwide. Since debuting in
North America in November 2004, World of Warcraft has become the most popular
MMORPG around the world. It is available in six different languages and is
played in North America, Europe, mainland China, Korea, Australia, New
Zealand, Singapore, and the regions of Taiwan, Hong Kong and Macau.

    Other solid performers in 2006 included the new releases Scarface: The
World is Yours, developed internally by Sierra's internal studio Radical
Entertainment, as well as Ice Age 2, The Legend of Spyro: A New Beginning ,
Eragon , and F.E.A.R. (for Xbox 360).

    Fourth quarter:

    For the fourth quarter of 2006, Vivendi Games' revenues of EUR 326
million were 33.1% above the prior year (up 38.5% on a constant currency
basis). This increase is primarily driven by World of Warcraft from Blizzard
Entertainment and Scarface: The World is Yours. Other bestsellers in the
quarter included the new releases The Legend of Spyro: A New Beginning, Eragon
and F.E.A.R. (for Xbox 360).

    Important disclaimer:

    This press release contains forward-looking statements with respect to
the financial condition, results of operations, business, strategy and plans
of Vivendi. Although Vivendi believes that such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future
performance. Actual results may differ materially from the forward-looking
statements as a result of a number of risks and uncertainties, many of which
are outside our control, including, but not limited to, the risks described in
the documents Vivendi filed with the Autorite des Marches Financiers (French
securities regulator) and which are also available in English on our web site
(www.vivendi.com). Investors and security holders may obtain a free copy of
documents filed by Vivendi with the Autorite des Marches Financiers at
www.amf-france.org, or directly from Vivendi. The present forward-looking
statements are made as of the date of the present press release and Vivendi
disclaims any intention or obligation to provide, update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

    (1) Comparable basis essentially illustrates the effect of the
divestitures or abandonment of operations that occurred in 2005 and 2006
(mainly NC Numericable in 2005 and PSG in 2006 at Canal+ Group and Annuaire
Express, SFR phone directory activities in 2005) and includes the full
consolidation of minority stakes in distribution subsidiaries at SFR as if
these transactions had occurred as of January 1, 2005. Comparable basis
revenues are not necessarily indicative of the combined revenues that would
have occurred had the events actually occurred at the beginning of 2005.

    (2) Comparable basis mainly illustrates the effect of divestitures at
Canal+ Group (mainly NC Numericable in 2005 and PSG in 2006), as if these
transactions had occurred as of January 1, 2005.

    (3) Comparable basis mainly illustrates the full consolidation of
minority stakes in distribution subsidiaries and excludes revenues from phone
directory activities (Annuaire Express) as of January 1, 2005.

    (4) ARPU (Average Revenue Per User) is calculated on a twelve-month
rolling period by dividing revenues net of promotions and net of third-party
content provider revenues excluding roaming in and equipment sales by average
Arcep total customer base for the last twelve months. ARPU is calculated on a
comparable basis, excluding revenues from phone directory activities (Annuaire
Express).

    (5) SFR excluding wholesale customers total base (wholesale customer base
reached 728,000 at the end of December 2006).

    (6) AUPU (Average Usage Per User) is defined as the incoming and outgoing
"voice" volumes divided by average Arcep total customer base for the last
twelve months.

    (7) Without Mauritel.

    (8) The customer base, compliant with the ANRT, is calculated as the sum
of prepaid customers giving or receiving a voice call during the last 3 months
and the number of not resiliated postpaid customers.

    (9) ARPU (Average Revenue Per User) is defined as revenue from incoming
and outgoing calls and data services, net of promotions and excluding roaming
in and equipment sales, divided by average prepaid and postpaid customer base
over the period.

    APPENDIX

    REVENUES BY BUSINESS SEGMENT

    (IFRS, unaudited)

    COMPARABLE BASIS (a)

    
                                                                 % Change
                                          4th     4th               at
                                         quarter quarter          constant
           (In millions of euros)         2006    2005  % Change    rate
    ----------------------------------------------------------------------
                  Revenues
    ------------------------------------
           Universal Music Group         1,657   1,682     -1.5%     1.7%
                Canal+ Group               918     875      4.9%     4.9%
                    SFR                  2,181   2,228     -2.1%    -2.1%
               Maroc Telecom               499     480      4.0%     5.5%
               Vivendi Games               326     245     33.1%    38.5%
    Non core operations and elimination
        of intercompany transactions       (36)    (32)   -12.5%   -12.5%
               Total Vivendi             5,545   5,478      1.2%     2.6%
    ----------------------------------------------------------------------

                                                                 % Change
                                        Full    Full                at
                                        year     year             constant
          (In millions of euros)         2006    2005  % Change     rate
    ----------------------------------------------------------------------
                 Revenues
    -----------------------------------
           Universal Music Group        4,955   4,893       1.3%      1.5%
               Canal+ Group             3,593   3,336       7.7%      7.5%
                    SFR                 8,678   8,693      -0.2%     -0.2%
               Maroc Telecom            2,053   1,860      10.4%     10.2%
               Vivendi Games              804     641      25.4%     26.1%
    Non core operations and elimination
        of intercompany transactions      (76)    (49)    -55.1%    -55.1%
               Total Vivendi           20,007  19,374       3.3%      3.3%
    ----------------------------------------------------------------------
    

    AS PUBLISHED (b)

    
      4th     4th                                 Full    Full
     quarter quarter          (In millions of      year    year
      2006    2005  % Change        euros)         2006    2005  % Change
    ----------------------------------------------------------------------
                                  Revenues
                             -------------------
                              Universal Music
     1,657   1,682     -1.5%        Group         4,955   4,893       1.3%
       918     892      2.9%    Canal+ Group      3,630   3,452       5.2%
     2,181   2,212     -1.4%         SFR          8,678   8,687      -0.1%
       499     480      4.0%    Maroc Telecom     2,053   1,860      10.4%
       326     245     33.1%    Vivendi Games       804     641      25.4%
                             Non core operations
                              and elimination of
                                 intercompany
       (36)    (32)   -12.5%     transactions       (76)    (49)    -55.1%
     5,545   5,479      1.2%    Total Vivendi    20,044  19,484       2.9%
    ----------------------------------------------------------------------
    

    (a) Comparable basis essentially illustrates the effect of the
divestitures or abandonment of operations that occurred in 2005 and 2006
(mainly NC Numericable in 2005 and PSG in 2006 at Canal+ Group and Annuaire
Express, SFR phone directory activities in 2005) and includes the full
consolidation of minority stakes in distribution subsidiaries at SFR as if
these transactions had occurred as of January 1, 2005. Comparable basis
revenues are not necessarily indicative of the combined revenues that would
have occurred had the events actually occurred at the beginning of 2005.

    (b) As they were provided to BALO.




For further information:

For further information: Vivendi Media: Paris Antoine Lefort, +33 (0) 1
71 71 11 80 Agnes Vetillart, +33 (0) 1 71 71 30 82 Alain Delrieu, +33 (0) 1 71
71 10 86 or New York Flavie Lemarchand-Wood, +(1) 212-572-1118 or Investor
Relations: Paris Daniel Scolan, +33 (0) 1 71 71 32 91 Laurence Daniel, +33 (0)
1 71 71 12 33 Agnes de Leersnyder, +33 (0) 1 71 71 30 45 or New York Eileen
McLaughlin, +(1) 212-572-8961

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