Vivendi Shares Slide as Gameloft Struggles Weigh on Revenue

Revenue for the period slipped to 140 million euros from 145 million euros a year ago. Gameloft bore the brunt of this contraction, with its revenue falling to 132 million euros and suffering a 12.9% dip in the second quarter on a constant-currency basis. Management attributed the shortfall to the seasonal nature of game launches, while Chairman Yannick Bollore and CEO Arnaud de Puyfontaine emphasized a pivot toward PC and console segments to navigate current industry pressures.

The company’s bottom line also faced significant headwinds. Adjusted earnings before interest and taxes plummeted to 4 million euros from 18 million euros, exacerbated by a 21 million-euro restructuring charge linked to a mutual termination plan at headquarters. Net profit followed the downward trend, settling at 28 million euros compared to 30 million euros in the previous year. Despite these results, Vivendi pointed to a pipeline of major releases and updates scheduled for the second half of the year as a potential catalyst for recovery.