This year, Vivendi says its profits should grow fast

The group clocked up 1.14bn euros (�770m; $1.41bn) net losses in 2003, down from 23.3bn in 2002.

Last year's recovery was aided by profits from its telecoms, pay TV and entertainment businesses.

Looking ahead, Vivendi should achieve "strong profit growth", the group said.

'Dynamic group'

Yet analysts were disappointed, having expected the net losses to come in below 1bn euros.

However, operating profits came in at 3.3bn euros, above analysts' expectations of 3.1bn euros.

The profit growth should continue, Vivendi predicted.

"In 2005, Vivendi Universal will be a dynamic media and telecommunications group delivering a strong increase in profit with high available cash flow," said chief executive Jean-Rene Fourtou.

This should enable Vivendi to "pursue internal growth as well as to invest in select external opportunities" he said.

Selling assets

Vivendi has been struggling under heavy debts built up in a 1990s buying spree by its former boss Jean-Marie Messier.

Mr Messier stepped down last year, since when the company has been selling assets, including its massive US entertainment business.

The group's debts stood at 11.6bn euros at the end of 2003 and should shrink to less than 5bn euros by the end of 2004, Vivendi predicted.