French media conglomerate Vivendi SA’s net profit went up 12 percent during the second quarter. The increase was mainly based on the growth of pay-TV broadcaster Canal Plus and the conglomerate’s videogame unit Vivendi Games. Only Universal Studios, the world's biggest record company and SFR, reported a smaller profit, but the decrease was too small to affect the overall growth of Vivendi SA.

The French media and telecommunications conglomerate said its net profit over the past three month ended June 30 was of €667 million ($978.6 million) compared to the €594 million earned in the second quarter of 2007.

Vivendi’s sales were up 15 percent last month to €5.99 billion from €5.2 billion a year earlier. The company said it was able to fund its recent deals and it did not have to issue rights. Vivendi’s latest deals include the purchase of SFR, fixed-line operator Neuf Cegetel and the founding of videogames behemoth Activision Blizzard ATVID.O.

"We used less cash than expected to make our acquisitions. We can continue Vivendi's expansion with the current balance sheet structure without tapping the market," Chief Executive Jean-Bernard Levy said during a press conference.

The group’s second quarter EBITA (Earnings Before Interest, Tax and Amortization) were up 3.2 percent to 1.36 billion euros ($2 billion). Canal Plus and Vivendi Games’ EBITA more than doubled. Vivendi Games is the producers of "World of Warcraft," currently the most popular online game.

Vivendi heads forecasted a 2008 profit growth of about 8.3 percent and said that they do not plan to make any acquisitions during the next months.

"We see a very good resistance to this slightly tense economic situation," Jean-Bernard Levy told reporters.

Vivendi shares dropped 0.6% in midmorning trading in Paris and have declined about 16% since the start of 2008.