Vivendi Universal, in half-yearly figures, is showing progress in its battle to turn the business around as net losses and debt narrow, but revealed little further detail of the $40bn merger of its US entertainment assets with NBC.

The French media and telecommunications group said net losses in the first half of 2003 narrowed to €632m ($724m) compared with €12.3bn last year, while net debt dropped to €13.7bn from €35bn. The figures were slightly better than expected.

Vivendi repeated its guidance for the full year saying it expected further growth in operating income and cash flow and predicted a return to profit excluding non-recurring items and goodwill. It added that following the NBC merger, net debt at the end of 2003 would be about €13bn, falling to below €5bn at the end of 2004.