Vivendi SE

PAR:VIV

Earnings Call Transcript 2020-Q3

[Operator]

Good evening, everyone, and welcome to the Vivendi Third Quarter Revenue Presentation. This conference call will be hosted by Mr. Arnaud de Puyfontaine, Chairman of the Management Board and CEO; and Mr. Hervé Philippe, a member of the Management Board and CFO. [Operator Instructions]I would now like to turn the call over to Mr. Arnaud de Puyfontaine. Please go ahead, sir. Your line is open.

[Arnaud Roy de Puyfontaine, Chairman of Management Board & CEO]

Thank you very much, and welcome, everyone. I hope that you are all keeping well and healthy. I would like to invite you to read carefully the disclaimer on Slide 2. Before handing over to Hervé Philippe, let me share some of the Q3 key highlights.Firstly, I am happy to report that Vivendi delivered improved revenue growth for the third quarter, plus 1.3%, and over the first 9 months of 2020, plus 2.4%. This increase in revenues was largely fueled by our 2 main businesses: Universal Music Group and Canal+ Group.Q3 has confirmed the strength of our subscription-based activities. UMG maintained positive momentum during the third quarter, driven by the significant increase in subscription and streaming revenues. Canal+ Group pursued its dynamic growth, mainly thanks to its international pay TV operations. I will come back to this.Of course, some of our businesses have been more affected than others by the coronavirus pandemic. This is particularly true in live events. Advertising is also a challenged industry. In a difficult market environment, Havas Group suffered from a slowdown in revenues. That being said, it reported a significant improvement in the third quarter of 2020 compared to the second quarter. Once again, Vivendi's resilient business model and complementary activities are a real strength in uncertain times.Let me now give you an update on current operations. The first one is the opening of UMG's capital. The process is progressing according to plan. After the successful completion of our agreement in March, the consortium led by our partner and friend, Tencent, has a possibility to acquire an additional amount of up to 10% of UMG at the same price and terms until January 15, 2021. We are pursuing the process of potentially selling an additional minority stake in UMG to other partners. The proceeds received from these sales may be used for service of Vivendi's financial debt, substantial share buybacks and acquisitions. The IPO is planned for 2022.The second highlight is the positive international development of Canal+ Group. Our global subscriber base grew by 1.2 million year-on-year, thanks to the successful integration of M7 and the launch of Myanmar. More recently, Canal+ Group announced its investment in the South African player MultiChoice. This operation reinforces our partnerships with the leader in pay TV in Africa and our emerging presence in the English-speaking world.With regards to Editis, the significant rebound observed at the end of the first lockdown in France has been confirmed, plus 10.4% in revenues in Q3. This result is even more remarkable in that Editis had already delivered a solid performance in the same period last year thanks to the curriculum reform. The strength of the recovery has helped offset a large part of negative effects of lockdown and bookstore closures.Let me conclude by saying a few words on the share buyback. Since January 1, 2020, Vivendi has repurchased 4.92% of its share capital. As of October 19, 2020, Vivendi holds 62.3 million treasury shares, representing 5.25% of the share capital. Delivering value to our shareholders remains a top priority. As you can see on the chart, Slide 7, more than EUR 15 billion have been returned to our shareholders since 2014, the year we repositioned Vivendi.To sum up, the Vivendi Group delivered good revenue performance in Q3. Despite the uncertainty created by the pandemic, we remain confident in the resilience of our main businesses. Let me thank, once again, our 45,000 Vivendi colleagues around the world who contribute to moving Vivendi forward every day.Thank you. And I will now hand over to Hervé.

[Hervé Philippe, Member of Management Board & CFO]

Thank you very much, Arnaud, and good evening to everyone. My pleasure to present to you our revenues for the third quarter 2020. Let's begin on Slide 9 with the impact of changes in currencies and in the scope of consolidation.The first table on this slide shows the impacts of the exchange rates and consolidation scope changes on our growth rates. In Q3, we experienced a downturn in our main currencies. The euro was up 3.1% against the U.S. dollar and 2.5% against the Japanese yen, resulting in a negative impact of 210 basis points on Q3 revenues, mostly at the UMG level.Consequently, the positive scope effect of 2.7 points was almost entirely offset by the negative ForEx impact. Keep in mind that should the U.S. dollar continue to decline in Q4, it could materially affect our revenues in Europe for the rest of the year. Regarding the main changes in the scope of consolidation, the acquisition of Editis was closed in February 2019, and we have integrated M7 at the Canal+ Group level since mid-September 2019.Let me give you a few updates on our balance sheet and liquidity situation. At the end of September, Vivendi's gross cash position amounted to EUR 2.8 billion and gross debt was just below EUR 6 billion. As shown in the chart, the maturities of the bonds are spread over time until 2028, and the debt average maturity is quite long at 4.7 years. At the end of September 2020, Vivendi also had available long-term credit lines of EUR 3.1 billion, and the market value of our listed equity portfolio was EUR 4.4 billion. In short, our balance sheet is in very good shape.Moving to Slide 11 on the organic growth by quarter. After the 7.9% decline in Q2, Vivendi revenue rose by 0.7% organically in Q3. The rise was notably due to solid performances delivered by Universal Music, Canal+ and Editis in Q3, improving significantly after second quarter hit by the pandemic.Breaking it down, Universal Music posted a plus 6.1% growth in Q3, a strong improvement compared to Q2, thanks to the performance of both its recorded music and publishing activities. Canal+ Group recorded slightly positive growth driven by international TV operations. Editis also returned to growth in the third quarter with a solid plus 10% increase in revenues after nearly 2 quarters hit by the lockdown in France. In these challenging times, Havas reported an improvement in the third quarter with an organic decline of 10% compared to 18% in Q2.Moving to the next slide, you will find the aggregated figures for the first 9 months of the year. At the end of September, Vivendi's total revenues amounted to over EUR 11.6 billion, an increase of EUR 275 million, mainly due to the good performances of Universal Music and Canal+ Group that also benefited from the acquisition of M7. Vivendi's organic revenue decreased by 1%, mainly due to the impact of the pandemic in Q2 at Havas, Editis and Vivendi Village.Now let's take a closer look at each business unit, starting with Universal Music on Slide 14. As you can see on the left-hand side of the slide, streaming and subscription growth was in good shape, generating more than EUR 400 million of additional revenues over the first 9 months of the year.In publishing, revenues also grew with an increase of over EUR 100 million driven by subscription and streaming on the receipt of a digital royalty claim in Q2. Excluding this item, music publishing grew 9.7% over the 9-month period. Due to the impact of COVID-19 both on touring and retail activities, other business lines delivered mixed performances year-on-year. Physical sales were down 10%, license revenues decreased by 11% and merchandising dropped by 42%.On the right, you can see in Q2 revenue from streaming and subscription grew by 8.5%, mainly due to the slowdown of the global ad market. Thanks to the improvement in both the advertising market and the consumption trends during the summer, subscription and streaming was back to strong growth in Q3 and increased plus 22.6%.On the next slide, you have the 2020 revenues quarter-by-quarter. After being impacted by the pandemic in Q2, Universal Music's revenues returned to growth in Q3 with a plus 6.1% organic increase. Beyond the very good performance of streaming and subscription, physical sales were up 14% in Q3 thanks to strength in Japan with BTS, King & Prince, Seventeen as well as strong U.S. catalog sales. Other best sellers for the first 9 months of 2020 included new releases from The Weeknd, Justin Bieber, Lil Baby and continued sales from Billie Eilish.Finally for Universal Music on Slide 16, you can see all the Universal Music 9 months revenue figures, which we have already gone through. Universal Music revenues were EUR 5.3 billion for the first 9 months of 2020, up 4.4%, with growth in recorded music and music publishing. Excluding the 2 onetime items which were mentioned in H1, revenue grew 2.8%.Moving to Canal+ Group, starting with the evolution of revenue quarter-by-quarter. After a 4% decline in Q2, Canal+ Group posted revenues of EUR 1.4 billion in Q3 2020, representing a slight improvement of plus 1% year-on-year. In Mainland France, revenue decreased 0.4%, impacted by the downturn in the advertising market due to the COVID-19 pandemic.Meanwhile, international operations continued to grow. Excluding M7 contribution, revenues grew 2.6% in Q3 2020 thanks to the growth in the number of subscribers across all geographic regions. In Africa, the activity was supported this summer by the broadcasting of the Champions League Final 8.And Studiocanal revenue were up 2% in Q3. The lack of income from fresh films has been partially offset by the sale of series and films from the catalog. Please also note that the basis of comparison was quite low as Studiocanal revenue declined by 16% in Q3 2019.Turning to Canal+ Group's aggregated 9 months revenues on Slide 19. Groupe Canal+ revenue amounted to more than EUR 4 billion for the first 9 months of 2020. As mentioned, international operation continued to be very dynamic and revenues increased by 4.3% organically, thanks to the increase of the subscriber base by 1.2 million new subscribers, mainly from Africa.Let me share another development in Africa during this quarter. Canal+ announced that it acquired 6.5% of the share capital of MultiChoice, the South African company, leader in pay TV. This investment is a long-term financial investment, demonstrating our confidence in the prospects of MultiChoice on the African continent.In Mainland France, at the end of September, revenues decreased by 1.6%. However, in Q3, Canal+ experienced good commercial trends, thanks to its enriched sports programs and other premium content with new films and series. Subscriber base in Mainland France reached 8.6 million at the end of September compared to 8.4 million 1 year ago.Moving to Slide 21 on Havas revenues per quarter. After a second quarter significantly impacted by the COVID-19, the advertising market is picking up in Q3, albeit to different degrees depending on the regions and sectors, even if it remains highly volatile. In that context, Havas' performance in Q3 improved significantly. Indeed, the organic growth reached minus 10.4% in the third quarter compared to 18.3% in the second one.Havas Health & You continues to report solid and positive performance, yet Creative and Media divisions remain impacted by the crisis. As you can see in the table, all geographic regions reported improved performance in Q3 compared to Q2. North American agencies continue to hold up well thanks to the market's resilience and the growth of health care communications. Europe posted an overall reassuring performance as this area was strongly impacted in Q2.Slide 22 presents Havas aggregated revenues for the first 9 months of 2020. At the end of September, Havas reported net revenues of almost EUR 1.5 billion, corresponding to reported growth of minus 8.8%. The positive consolidation scope effect amounted to 2.3%, a significant increase compared to the impact of plus 1.2% for the full year 2019. The main contributors were the consolidation of Gate One, Buzzman and the 3 Indian agencies all acquired in Q3 and Q4 2019.As discussed at the beginning of this presentation, the FX effect turned negative this quarter, leading to a minus 0.2% impact on 9-month growth. As a result, organic growth amounted to minus 10.9%. As already stated in July, a cost adjustment plan has been implemented since the early weeks of the crisis in both the Media and Creative divisions. Havas is intensifying its efforts in the second half of the year. This plan aims to mitigate the impact of COVID-19 on EBITA.Slide 24, going to Editis. Vivendi has fully consolidated Editis since February 2019. And Editis revenues were just below EUR 0.5 billion for the first 9 months of 2020, down 4.8% pro forma. The pandemic significantly impacted all of Editis' activities during the shutdown of the book retailers between mid-March and mid-May. However, following the end of the lockdown period, Editis enjoyed a strong recovery with a revenue increase of 38% in June. This positive trend continued during Q3, leading to a plus 10% growth in Q3.Let me now give you the main factors behind the mixed performances of the other businesses on Slide 25. In Q3, Gameloft's revenues were up 5.2% organically, and the revenues of New Initiatives, which includes Dailymotion and Group Vivendi Africa, grew 4% organically. On the contrary, still significantly impacted by the measures linked to the COVID-19 pandemic, Vivendi Village revenue amounted to EUR 8 million, down 80% year-on-year.On Slide 27 you'll see our conclusion, which is the third quarter revenues driven by the good performances of Universal Music, Canal+ and Editis. Please note that we will release our full year 2020 results on March 3 after market close, and our shareholders' meeting will be held on June 22 next year.Thank you very much for your attention, and we are now ready to take your questions.

[Operator]

[Operator Instructions] The first one comes from the line of Lisa Yang from Goldman Sachs.

[Lisa Yang, Equity Analyst]

The first one is obviously on UMG, which did really well on streaming, even better than in the first quarter. You talked about the improvement in advertising. Could you maybe confirm whether you're back to pre-COVID level, even above pre-COVID level? And how much of the recovery in Q3 is also driven by market share gain or boost from new deals? And how should we think about the sustainability of the momentum into Q4?The second question is on your discussions with other partners around the stake sale in UMG. I mean given how strong UMG has been, would you either consider selling at the same valuation of EUR 30 billion or you will not consider selling until you get a higher valuation than this?And the third question is on Canal+. Clearly, the momentum has been doing well. I expect Mediapro hasn't had much impact on Canal+ in Q3. But given they seem to be having financial difficulties in France, just wondering how you're thinking about the opportunity to buy more football rights.

[Hervé Philippe, Member of Management Board & CFO]

Well, to answer the first question and probably Arnaud will answer the second and the third one. We saw in the third quarter subscription and streaming going very well and back to growth at the past, which is in line with what it was prior the COVID-19 crisis, I would say.This being said, we have had a very good quarter in terms of releases and new albums also, and we have also good figures especially in physical sales and especially in Japan. This is why it's very difficult to predict what will be the growth in the fourth quarter. You have always the effect of the sort of average realization, I would say, of the different quarters thanks to streaming and subscription. And we don't know what will be exactly the sales in physical indeed in the rest of the year.So it's very difficult to make very precise figures, but we are very confident for the future. I take this opportunity also to say that we will continue to be opportunistic in terms of gaining market share for the long term through investments in artist advances and acquisition of catalogs if there are some good opportunities to take in the second part of the year, I would say.

[Arnaud Roy de Puyfontaine, Chairman of Management Board & CEO]

Your second question, we are very happy as regard to the development and the collaboration with our friends and partners of Tencent. We're happy about the trend of Universal Music Group. And we see a good trend, which is an illustration of the strength of the leadership position of Universal Music Group. And as regards to the discussion that we are currently having with other potential partner, we're not going to comment specifically on those discussion. But we expect the good trend of our operation to be helping the completion of our current discussion. Terms are not going to be commented at this stage.And on your last question on Mediapro, well, we're not surprised of what's currently happening and just refer to the comments made by Maxime Saada after the auctions and the prices that we have seen some months ago now. It's just happening a little bit earlier than expected. We are very happy about the offer of Canal+ as regard to the football offering. We've got good English Premier League. We got the agreement with beIN Sports, which is providing our customers and subscribers with a very high-quality event on a weekly basis.No need to say that we've got also best of breed, second to none coverage of rugby with the Top 14 and Moto Grand Prix, Formula 1, golf. So I'm not going to comment anymore in terms of the situation with Mediapro. And we are monitoring the situation with the latest developments that we have seen last week.

[Operator]

The next question comes from the line of Omar Sheikh from Morgan Stanley.

[Omar Farooq Sheikh, Equity Analyst]

I have 3 questions, if I could. Firstly, I noticed in the comments that you made about the use of proceeds from Universal sales, you've added the paydown or reduction of financial debt on top of buybacks and M&A. So I just wondered if you have in mind a target leverage ratio that you're planning towards for next year. That's the first question.Secondly, in relation to MultiChoice, I wondered if you could just give us a bit more color on what industrial synergies, if any, you see from the sort of cooperation with MultiChoice and if there are limits to the number of shares or the share capital that you might want to own of that company. That's the second question.And then finally on Universal, you concluded a series of distribution agreements with your distribution partners on paid streaming this year. I wonder if you could let us know if you're having any other conversations with other distribution platforms, TikTok and others, for example, that we might sort of anticipate going into next year might perhaps boost your streaming revenue growth. Some more color on that would be very helpful.

[Hervé Philippe, Member of Management Board & CFO]

Omar, to answer your question on the use of proceeds, you have well read what is on the press release. And indeed, we have something which is very simple in mind. In fact, we have a bond which come to the end in May, I believe, for EUR 1 billion. So this is a very simple use of cash to use a part of the cash we will receive from the proceeds of UMG to use EUR 1 billion to reimburse the bond in May without refinancing this bond at the same time. I think this is good use as the banks don't give any good remuneration, I would say, for our deposits, to use the cash to reimburse the gross debt. So this is a very simple use of the cash.Maybe to answer to the third question, and Arnaud will take the second one. I can say that we are ready to discuss with every new way to consume music and to go to such development of the usage of music in different areas in the platforms and other ways to broadcast or to diffuse or to listen to music, TikTok and others. We have discussion with them indeed with some sort of agreement on a case-by-case basis, I would say.

[Arnaud Roy de Puyfontaine, Chairman of Management Board & CEO]

Thank you. So on the question on MultiChoice, Canal+ and MultiChoice have been partners since a long time. And our move is friendly and MultiChoice had been informed of our stake acquisition. The acquisition of this stake in MultiChoice is a long-term financial investment. We seized the opportunity to buy a stake at an attractive price and to reinforce our existing relationships with this company. We do feel confident about the growth prospect of MultiChoice. We have been and I'm reinforcing the point partner for a long time with distribution deals and so some co-finance production project. And I think it's completely aligned and consistent with our growth profile, our vision about the potential in the African continent.As regard to the different evolution, they are all regulated as regard to foreign ownership per South African law. And I'm not going to comment on what could be the next phase. But again, confident on African continent, confident in consistency and the complementary aspect of English-speaking operation. MultiChoice is a very great company. And we think that this relationship is going to be developed in the foreseeable future.

[Operator]

The next question comes from the line of Adrien de Saint Hilaire from Bank of America.

[Adrien de Saint Hilaire, VP & Head of Media Research]

Yes. So I've got a few questions, please. First of all, on the buyback, the current authorization, I think, expired today. Did the Management Board renew that authorization for the coming weeks? And do you still feel that EUR 26 per share is the right level for doing a buyback? Secondly, I think you've slightly pulled forward or reframed the timing of the UMG IPO to 2022. Can you discuss why that would be the case? And thirdly, maybe a question for Hervé, given the mix of revenues for UMG in 2020 with streaming and publishing outperforming merchandising and the other bits of UMG, is it fair to assume that the margin evolution of UMG should be even better than what was observed in previous years?

[Hervé Philippe, Member of Management Board & CFO]

Maybe I can comment on the first and third one, and I'll let Arnaud the second one. For the share buyback, it's right that we come to the end of the current program. And the plan is probably to continue as we have an authorization from the shareholders' meeting up to 10% of the capital. And we believe that it is a good way to return money to shareholders to go it through share buybacks and especially to buy back shares on the market. So it's likely that this will continue in the coming weeks and months, I would say.This being said, the EUR 26 per share is the maximum price that we are authorized to buy by the shareholders' meeting. So this is the maximum. It doesn't mean that it is necessarily at this price that we buy the shares, but this is the maximum authorized by the shareholders' meeting. To come to the third question on margin, I'm sorry, I will not comment on margins as it is a call on the revenue. So I'm sorry, and I'll let you make your own assumptions of the consequences on the margins, of the breakdown of the growth of revenues.

[Arnaud Roy de Puyfontaine, Chairman of Management Board & CEO]

As regard to the timescale for the UMG IPO, we said end of July after our 2019 results disclosure that we would IPO no later than January 2023 with a possibility to make it in 2022. The announcement this evening is that we'll make the IPO in 2022. There is kind of a number of reason, solid trend of our operation, good market perspective and good quality discussion with our partners. So what we are sharing with you this evening is absolutely consistent with our last communication on that very specific topic.

[Operator]

The next question comes from the line of William Packer from Exane BNP Paribas.

[William Henry Packer, Executive Director of Media Equity Research]

Firstly, Tencent's been in the headlines as the U.S. government look to ban WeChat. Press speculation suggests CFIUS could be investigating other areas of their businesses in the U.S. Should we see any risk to further Tencent stake sales? That's question one. Question two, you've now had some time to work with Tencent Music on your Chinese joint venture. Could you talk a little bit more detail about the strategic upside you're seeing from that cooperation? And then finally, Kanye West has been, let's say, vocal on his unhappiness around his contract. While obviously I don't expect you to refer to that contract specifically, should we be concerned about artists looking to control their masters and what that could mean for UMG? Is the company news flow making that more intense? Any color would be helpful.

[Arnaud Roy de Puyfontaine, Chairman of Management Board & CEO]

So on CFIUS, last time we had a call, we referred to this specific item. When we announced the 10% stake of Tencent, I mean, the application on CFIUS was made, including the option for Tencent to raise -- for the consortium led by Tencent to raise another 10%. So we think that this specific item is covered in what we did previously.

[Hervé Philippe, Member of Management Board & CFO]

For the Chinese agreement, this is not yet signed, but this is always on work. I think that it is the big interest of both Tencent and Universal Music to go do this agreement and details will be given in the future on this agreement. We can believe that it is something which will create value for all our activities in this region in the future.

[Arnaud Roy de Puyfontaine, Chairman of Management Board & CEO]

And on your last question, which is as regard to the Kanye West, well, as a principle, we are not commenting on any individual artist matters. Part of UMG's success has always been flexible and taking an individual approach to artist deals, forming a relationship with the artist that create value for both sides. And as always been the case, the relationship varies and depending on the tragic story of artist's career, the market and many other factors, there is not and never has been a one size fits all artist contract model in the music industry.Since I took the job in 2014, we have seen from time to time a question of that matter. But I'm very proud of the job done by all the head of our music labels under the great leadership of Sir Lucian Grainge. Part of the UMG leadership position is based on this relationship with key artists. And when you see the level of our artists, when you see the way we are working with them, this is a sign that is illustrating the strength of the model, the strength of what Universal Music Group stands for. And so we are dealing on a kind of a case-by-case basis with all our artists, but we don't see any type of weakness in the model in the future. Thank you, William.

[Operator]

The next question comes from the line of Julien Roch from Barclays.

[Julien Roch, MD & European Media Analyst]

My first question is on the UMG IPO. Will you sell any shares or will be coming mostly from your existing or potential partners? And if you sell shares, what's the minimum level you're happy to go down to? 80%, 70%, less? Second question is, could you give us an indication of the percentage of French Canal+ subscription that take a sports package? Is it 10%, 20%, 30%, 40%, 50%? And then last question, streaming and subscription up 22.6% in Q3, which is a really good performance. You said that advertising had recovered somewhat, but can we have some color on the growth of advertising in Q3, advertising only? Is it up 5%, 10%, 15%, 20%?

[Arnaud Roy de Puyfontaine, Chairman of Management Board & CEO]

Julien, I will leave Hervé for question 2 and 3, and I'll take the first one. So it's going to be an easy answer because I'm not going to comment on what's going to be the structure of the IPO. We are currently focusing in completing Stage 1 of the process. And as regard to the characteristic and parameters as regard the IPO, we'll be able to share them with you in due time and not now. Thank you.

[Hervé Philippe, Member of Management Board & CFO]

Yes. So on the second question, which is concerning the sports package typically in Canal+ offer. I'm sorry, but we do not disclose the number of clients of this specific package and it's also something which is a little bit complicated because it depends on where the programs are. And in fact, you have very good sports program in the main Canal+ channel. For example, the football games or rugby in the Sunday evening. So the sports package in itself are not the only way to look at sports on Canal+ in the offer.And this being said, for the third question, which is concerning the ad part. I would say, the subscription and streaming, we do not disclose also the breakdown between subscription and streaming, but we can say that, obviously, advertising, generally speaking, has not been very well oriented in terms of value of the ads. This is the case we have seen at Havas also. And you have seen some decline in the revenues at Havas explained by the prices of the ads. So we do not disclose it for Universal Music specifically and neither on the global year or on a quarter by quarter. And we give a figure for subscription and streaming which is very good for the third quarter, as you have said.

[Operator]

The next question comes from the line of Matthew Walker from Crédit Suisse.

[Matthew John Walker, Research Analyst]

Just 2 questions. So Havas did a little bit worse than Publicis. I was just thinking, do you feel that Havas needs to be strengthened through consolidation in the agency sector? That's the first question. Second question is, obviously, you've made the right call on the French football rights in terms of the price. I was just thinking, do you feel that you've got enough football and enough sports or for the right price, would you be interested still in the rights that Mediapro holds in the event that the league has to take the rights back?

[Arnaud Roy de Puyfontaine, Chairman of Management Board & CEO]

Thank you for your question. I would like, firstly, to ask to be careful when comparing figures. For example, the definitions of geographical areas are not the same between all agencies. And we will see the coming publications of our peers. I do believe that Havas has a strong business model and a clear strategic advantages, such as its meaningful positioning, its integration into Vivendi, which give us optimism and full confidence in its growth potential. We are building day after day our strategic vision. The reactivity of the company has been second to none in terms of coping with the exceptional and unheard of condition of operation due to the pandemic.And as regard to the size, I must say that we prefer muscles to size, and creativity is much more important than anything else. So agility, speed of reaction to the circumstances, uniqueness and meaningfulness of our strategic vision and the relationship between Havas and Vivendi is second to none, sorry. And we are very exciting with all the Havas team and with Yannick Bolloré to build and to prove, as we said, that the proof of the pudding is in the eating. But that despite the circumstances, we will be in a position to demonstrate the validity and the strength of our strategic vision for Havas in the future.As regard to your question number two, we are very happy with the proposition of sports for the Canal+ subscribers, as I already said during this call. I said that when you remember and if you look back to the comments made by the very talented team at Canal+ led by Maxime Saada at the auction. We said very precisely that we were developing our subscriber offer, but at the right price, and we did consider at the time that the level was not sustainable. Now we are where we are. And what is important is today and tomorrow. We are satisfied again with the offering.And as regard to the evolution, we will only take a decision that are going to be financially good for the sustainability, the strength and the performance of our business model. And obviously, Canal+ has been a long-term player in that football environment. And Maxime Saada and his team are close to the current situation. I'm not going to add anything more at this stage. Thank you very much, Matthew.

[Operator]

The next question comes from the line of Richard Eary from UBS.

[Richard Eary]

Can I just firstly come back to the streaming number. Can you just clarify that there's no one-offs in that number. Is that true or not?

[Hervé Philippe, Member of Management Board & CFO]

We have 2 one-offs that we have disclosed in Q1 and Q2 to be precise, which are explained in our slide, in Slide #15, that you can see the impact of the one-off we have disclosed in Q1 and Q2.

[Richard Eary]

But there is nothing in Q3. That's clear.

[Operator]

The next question comes from the line of Conor O'Shea from Kepler Cheuvreux.

[Conor O'Shea, Head of Media Sector]

Three quick questions. Firstly, on Universal, had another excellent quarter for physical sales despite a tough comp and a disruption of a COVID year. I think that's quite a few strong quarters on physical that you've had. And obviously, you had a strong release. And I understand the comments on Japan. But has something changed in terms of the declines that we come to expect on physical, has that come to an end? That's the first question. Second question on Havas. Hervé, you mentioned restructuring plan in the second half of the year. Can we have a sense of how much restructuring costs we could expect with regard to that plan?And the third question, just in terms of your investments in listed companies. I understand that the first half of the year you spent about EUR 800 million on investments in listed companies, of which Lagardère was about EUR 350 million. Just looking at the math, it seems like the rest was not made up by your investment in the South African pay TV company. So if you're not willing to discuss which specific companies you've been investing in, can you give us a sense of what your approach to investing in other listed companies is in terms of the type of companies you would look at?

[Hervé Philippe, Member of Management Board & CFO]

Well, to answer your question on physical, we do not see specifical reason to have the same strength in Q4 that we saw in the third quarter, which was largely driven by Japanese releases in physical. This being said, it will depend on the releases in Q4 on the success of the Christmas sales. On Havas, we confirm that we are intensifying the restructuring cost and to adapt the structure of Havas to the top line, in fact. So this is to improve the profitability of Havas, I would say, but at this stage we do not disclose the amount of restructuring cost as it is a call dedicated to revenues.And finally on the investment we've done. You're right that we have invested roughly EUR 800 million in the first half, largely in Lagardère. We have also invested or beginning to invest in MultiChoice in the first half. And we have one other investment, which is in partner company, I would say, for business reasons and -- which is a limited amount in the stake of this company, which is not disclosed for competitive reasons, but it is a friendly operation without, I would say, a specific increase to be expected in that investment. So this is for business reason, I would say.

[Operator]

Thank you. That was our last question for today. I will now hand you back to our host to conclude today's conference.

[Arnaud Roy de Puyfontaine, Chairman of Management Board & CEO]

Well, thank you very much indeed for your questions and your attendance. It's very important for us to develop the relationship with you all. And I wish you a very good evening. And Hervé?

[Hervé Philippe, Member of Management Board & CFO]

Goodbye to everybody and thank you very much for your attention.

[Operator]

Thank you for joining today's call. You may now disconnect.