Vivendi: Credit Suisse still says buy
(CercleFinance.com) - Vivendi plans to float Universal Music Group (UMG) by 2023.
"This is partly due to having now simplified the corporate structure at UMG and partly because the company believes it will be able to prove there is a further leg of growth in Emerging Markets by 2023," Crédit Suisse says.
"UMG margin underwhelmed in FY19, growing only 70bps (vs 160bps in FY18) and being down 50bps in H2 19," the broker adds.
"Cash flow hit by one-offs in FY19, should rebound in FY20. CFFO was hit hard in FY19, down 20% to E903m. This was due to a) restructuring, b) music catalogue acquisitions and c) settop box capex. These factors should ease, leading to a rebound" it continues.
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