VU Games' earnings off $70 million in Q3 2003

Buoyed by its film and TV divisions, Vivendi Universal Entertainment reported a third-quarter profit of €197 million ($238 million) today, up one percent from the same period in 2002. The announcement surprised analysts, many of whom predicted the media giant would report losses due to payments on its crushing €12.8 billion ($15.4 billion) debt and weak sales from its Universal Music Group division.

One division of the company that did not fare well in the third quarter was VU Games. The company's software suffered a massive €58 million ($70.1 million) loss, versus a €2 million ($2.41 million) dip in Q3 2002. According to Vivendi's earning report, "lower gross margin on the revenue decline was the most significant contributor to the profit shortfall."

The company’s outlook for Q4 was similarly gloomy, predicting its game sales would "remain depressed" for the rest of the year. The report said the company was planning to restructure VU Games as a result of the losses, although no specifics regarding possible actions (i.e. job cuts or office closures) were given. The entire VU earnings report can be read here.