FRENCH media and telecommunications giant Vivendi SA said yesterday that net profit in the second quarter was little changed as higher earnings at its Canal pay-TV operations offset a decline in profitability at its SFR mobile telecoms business.

Adjusted net income in the three months through June rose to 757 million euros (US$1.1 billion) from 755 million euros a year earlier, Vivendi said. The company did not provide a value for net profit, preferring to use a measure adjusted to exclude most nonrecurring and non-operating items.

Earnings before interest, tax and amortization, an important gauge of core profitability known as EBITA, rose 3.2 percent to 1.36 billion euros. All Vivendi's business divisions reported growth in EBITA in the quarter except SFR, Vivendi's biggest money earner, and Universal Music.

Sales at SFR were lifted by the acquisition of Neuf Cegetel, a rival French telecoms operator, earlier this year, but EBITA declined 0.7 percent due to an increase in customer acquisition and retention costs. EBITA at Canal advanced 31 percent and more than doubled at Vivendi Games, the maker of "World of Warcraft," the world's most popular online game. In July, Vivendi merged its games business with American video games group Activision Inc to form Activision Blizzard, which is controlled 54 percent by Vivendi.