Vivendi SA (NYSE:VIV) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.
Philippe Capron – CFO: You are sitting exactly behind the two experts who are able to answer your questions.
Unidentified Company Speaker: No, no (indiscernible).
Jean-Francois Dubos – Chairman: Hello, two three, I guess. I got about the tariff drop. When you are concerned with our tariff drops you should look at our competitors tariff decreases as well and in very detail and you will see that as Philippe mentioned, we are not leaders in getting prices, we are fast followers, but followers on lean. When you – it may appear that we are less expensive, but it’s for much less than the others, especially orange and what we did in our general tariff decrease was just to align to competitors tariff, including promotions which tends to be everlasting promotions those days. So be careful. This was the first thing. The second thing was, what is the impact on the EBITDA for 2013? Last year we announced that over 2012, ’13, ’14 Mobile Service revenues should decrease by 25% that was an estimate. We decline – we decreased 11% this year. We shall decrease 12%, 12.5% in 2013. When I say this year, it was 2013, excuse me. This is more or less in line with what we had said last year, so we are not Visionaire, but for the time being it’s – we are in line. The better than expected EBITDA decrease that we experienced in 2012 is due to the fact that we are controlling cost not that bad, but also the fact that we were slightly late in repricing the base versus our competitors. Actually we started actively with pricing in September and we are accelerating this year. But we are on track with what we announced so far (across the) Europe. Just to mention that you didn’t ask the question but I will answer. The EUR2.9 billion EBITDA guidance for 2013 is quite challenging. It assumes no further price war or very limited – very, very limited one. No change in French tax environment, we have a lot of taxes (indiscernible) we expect a good news (indiscernible). We assume it will not change, but it’s not yet decided and also it’s subject to global French economic environment being stable which is not sure. So this guidance has more potential downsize than upsize. You may understand.
Unidentified Company Speaker: (Gregor)?