This morning in Paris, Vivendi Universal announced its earnings for the calendar year 2005--and it was a good 12 months for the multinational media conglomerate. Overall income fell 16 percent to 3.15 billion euros (＄3.75 billion), thanks to its 2004 sale of Universal Studios to NBC parent General Electric. However, year-on-year adjusted income shot up 55 percent to 2.08 billion euros (＄2.48 billion), thanks to three resurgent divisions: mobile phones, music, and...games?

Yes, after a long slump, VU Games is back in the black, thanks to a whopping 244 million euro (＄290.8 million) one-year jump in earnings. Whereas the division lost 203 million euros (＄241 million) in 2004, it netted 41 million euros (＄48.9 million) in 2005. Vivendi‘s overall earnings report said the game division‘s "dramatic and fast improvement in earnings from operations is the result of the strategy implemented since 2004." Specifically, it credited "lower costs resulting from the global turnaround plan."

Those familiar with VUG-owned developer Blizzard Entertainment can likely name one of the main reasons for the division‘s change of fortunes. The earnings report said the games group now has "a better balanced portfolio of products thanks to the tremendous on-line activity development with the exceptional success of World of Warcraft."

You can get the fiscal report here