PARIS – Europe's largest entertainment group Vivendi on Thursday posted a 10.2 percent rise in first-half sales, which lagged market expectations, but it confirmed its full-year outlook.

Vivendi, which owns the world's biggest record company Universal Music Group and controls France's No.2 mobile operator SFR, said revenues reached 11.268 billion euros ($17.64 billion) in the six months to June 30.

The result compared with the average forecast of 11.336 billion euros from a Reuters poll of nine analysts.

Overall, second-quarter revenues were 5.988 billion euros, undershooting analysts' expectations of 6.056 billion euros.

For the current year, the group said it expected profit growth similar to that for 2007, excluding disposals and acquisitions.

Vivendi this month merged its games division, which owns online role playing game “World of Warcraft,” with Activision Inc to form Activision Blizzard, in which it now owns 54 percent.

Due to the merger, Vivendi also published underlying profit figures for its games unit ahead of time. Earnings before interest and tax (EBITA) came at 92 million euros for the first half and 42 million euros for the second quarter, up from 12 million euros in the second quarter 2007.

Vivendi Games revenues were 223 million euros in the second quarter, up 6.7 percent at current currency rates.

Universal Music Group's second-quarter sales were down 5.3 percent at current exchange rates to 1.011 billion euros, roughly in line with expectations of 1.033 billion based on the Reuters poll.

They were up 3 percent year-on-year at constant currency rates.

SFR's second-quarter revenues rose 1.5 percent on a comparable basis but were up 33.3 percent on a published basis at 2.987 billion euros, boosted by the acquisition of Neuf Cegetel whose revenues were consolidated as of April 15.

The figure lagged expectations of 3.016 billion euros in the Reuters poll.

Second-quarter mobile service revenues increased by 2.5 percent to 2.151 million. Excluding the impact of mobile voice termination regulated tariff cuts (13 percent) as of January 1, 2008, SFR mobile services revenues would have increased by 4.2 percent, it said.

Broadband Internet and fixed revenues reached 842 million euros, up 7.6 percent against last year on a comparable basis.

Pay TV group Canal plus generated second-quarter revenues up 4.8 percent at 1.139 billion euros against 2007, which compared with the average forecast of