Shares in Vincent Bolloré’s Vivendi group slumped to their lowest level since the aftermath of last June’s EU referendum on Friday, after the company reported a sharp drop in operating profits on Thursday evening.

Vivendi released its annual results after markets closed yesterday, reporting a 23 per cent drop in its core operating profits.

The media conglomerate owns businesses including Universal Music Group, the world’s largest record label, French TV channel Canal Plus, and stakes in companies such as Telecom Italia and Mediaset.

Shares in the company were down 4.4 per cent at publication time, to €16.26, putting it at the bottom of the Europe-wide Stoxx 600 index.

Jerry Dellis, analyst at Jefferies, said Vivendi’s guidance for the coming year was more positive than expected, but warned that it “appears optimistic in light of still heavy declines in Canal Plus France.

He added:

The lack of “underlying” guidance leaves open the possibility that lower restructuring costs could contribute more than half of the guided EBITA [earnings before interest, tax and amortisation] increase. And with little detail on early results from C+ France’s new commercial model, forecast visibility remains opaque.

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