UMG Up 3.2% As Vivendi Posts Lower Q2 Revenues
August 30, 2012 at 3:53 AM (PT)
UNIVERSAL MUSIC GROUP's parent company, VIVENDI has posted lower financials for the first half of 2012. The company reported eu14.1 billion, down 1.2% compared to first half 2011. EBITA was eu2.9 billion, down 12.7% compared to first half 2011. Adjusted Net Income was eu1.5 billion, down 16.6% compared to first half 2011.
During first half 2012, UNIVERSAL MUSIC GROUP's recorded music best-sellers included new releases from JUSTIN BIEBER, MADONNA and NICKI MINAJ and breakthrough success of new artists such as LANA DEL REY and GOTYE.
UMG's revenues were eu1,922 million, a 3.2% increase compared to first half 2011. Higher revenues were driven by increased music publishing revenues and improved recorded music sales in NORTH AMERICA. VIVENDI noted, "It was also due to favorable currency movements. Revenues were down 1.0% at constant currency. An 8.9% increase in digital sales and higher license income almost offset the falling demand for physical product and lower merchandising revenues. First half 2011 also benefited from the success of LADY GAGA's 'Born This Way' album."
UMG's EBITA was eu156 million, an 18.2% increase compared to first half 2011 (+15.3% at constant currency), "driven by continued cost management and an improved product mix."
"All our businesses are focused on developing solid commercial performances and on continuously adapting their cost base," said CEO JEAN-FRANCOIS DUBOS. "We remain totally committed to recreating shareholder value, growing adjusted net income per share and keeping a strong credit rating. With this in mind, we will continue to work on VIVENDI's strategic development."
Regarding the proposed UNIVERSAL/EMI MUSIC merger, VIVENDI noted, "The acquisition of EMI MUSIC's recorded music activities is currently subject to the approvals from certain regulatory authorities, although approval has already been received from JAPAN, NEW ZEALAND and CANADA."