VIVENDI UNIVERSAL, the media and telecoms group, is hoping to buy the publishing businesses of either EMI or Warner Music should the two groups merge.

The French group, which reported full-year results yesterday, is weak in publishing — songs’ lyrics and notes — despite its market-leading position in recorded music, with artists such as U2 and 50 Cent.

Jacques Espinasse, finance director, said: “They (a merged EMI and Warner Music) would have a significant market share. They would have to sell publishing businesses and they know our phone number, so they can call us.”

Universal Music’s fourth-quarter profits were down by 12.2 per cent to €267 million (£181 million), underlying the volatility in the recorded music business — although profits were up 20 per cent to €480 million for the full year. Publishing, by contrast, is more stable, generating revenue from popular songs written many years ago but repeated in cover versions, in advertising and even as ringtones.

Although EMI and Warner Music are ranked third and fourth by size, the two companies own the two largest publishing operations in the world and the expectation is that in the event of any merger, the duo would have to offload one of the two operations, most likely Warner Chappell.

Vivendi’s interest in expanding its publishing operation demonstrates its appetite for acquisitions after a long period of financial turmoil. The French group nearly went bankrupt under the leadership of Jean-Marie Messier and was dramatically slimmed down to ensure its survival.

Vivendi Universal’s group results were better than expected, with net profits of €2.08 billion, up 55 per cent. Buoyed by the improvement, Vivendi raised its dividend by 67 per cent to €1, and promised to pay 55 per cent of net profits to investors in future.

The key to the improvement was a dramatic recovery in the health of Vivendi’s computer games operation, helped by a restructuring and the continuing popularity of its World of Warcraft multiplayer game. The unit earned €21 million in the fourth quarter and €41 million in the year — against a loss of €203 million in 2004.

Vivendi’s Canal Plus, the French pay-TV group, suffered a 5.9 per cent fall in full-year operating income to €176 million. Vivendi also controls SFR, the mobile phone operator.