Vivendi Revs Down 1.5%, But UMG Grows 16.3% With Acquisition Of EMI
August 29, 2013 at 4:01 AM (PT)
VIVENDI, the parent company of UNIVERSAL MUSIC GROUP, has released its first half year 2013 financial results. The highlights:
* Revenues: eu10.842 billion for the four companies in the perimeter, down 1.5% compared to first half 2012
* EBITA: eu.391 billion, down 27.0% as expected (-25.7% at constant currency).
* Adjusted Net Income: eu845 million, down 25.0%, mainly reflecting the EBITA decrease.
Universal Music Group
UNIVERSAL MUSIC GROUP’s revenues were eu2,236 million, up 16.3% compared to first half 2012 (+19.0% at constant currency). Digital sales represented 53% of recorded music sales compared to 47% in first half 2012.
Recorded music best sellers this half year were led by carryover sales from RIHANNA and IMAGINE DRAGONS, THE ‘LES MISÉRABLES’ SOUNDTRACK and the acoustic album ‘Believe’ from JUSTIN BIEBER.
UMG’s EBITA of eu143 million represented a decrease of 8.3% compared to first half 2012 (-5.5% at constant currency), including restructuring and integration costs related to the acquisition of EMI RECORDED MUSIC, as well as unfavorable currency movements, a tough comparison against strong recorded music releases over the first half of 2012 and specific difficulties in the Japanese market.
Excluding restructuring and integration costs, UMG’s EBITA was up 6.2% compared to first half 2012. Synergies related to the EMI RECORDED MUSIC acquisition, which are expected to be more than eu100 million, remain on track to be delivered by the end of 2014.
On JULY 1st, VIVENDI and UNIVERSAL MUSIC GROUP completed the disposal of PARLOPHONE LABEL GROUP. This sale represented the final significant divestment required by the EUROPEAN COMMISSION in connection with the EMI RECORDED MUSIC acquisition. The total net sale proceeds amounted to approximately eu700 million in cash.