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Vivendi Universal Games performance continued to suffer a decline.

3rd December 2003, 8:39am
Vivendi Universal Games performance continued to suffer a decline in the 3rd quarter results posting a $58 million Euros loss. This is compared to a $2 million Euros loss at the same time last year. For the first nine months VUG has posted a $110 million Euros loss compared to a $37 million Euros operating income last year.

Lower gross margin was a significant contributor to the profit shortfall. Combined with additional royalty expenses due in part to titles which did not fully earn out. An increase in returns/price protection discounting to sell slow moving titles were the other key variances.

VUG is expecting the 4th quarter operating performance to remain depressed. A restructuring plan is being implemented to address those issues.

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by Robert Gardner