Vivendi Reports Revenues Up Slightly, UMG Rises Almost 13%
February 25, 2014 at 5:40 AM (PT)
VIVENDI, the parent company of UNIVERSAL MUSIC GROUP, has reported their latest financials.
- Revenues: €22.135 billion, up 0.2% at constant currency (-2.0% at actual currency and -4.0% at constant currency and perimeter) compared to 2012.
- Vivendi’s media and content activities increased strongly by 10.1% at constant currency (+5.7% at actual currency and +1.7% at constant currency and perimeter).
- The SFR transformation plan has been a success: in the fourth quarter 2013, SFR recorded its best commercial performance over the last two years in the Retail Postpaid Mobile market.
- EBITA: €2.433 billion, down 20.6% at constant currency (-23.1% at actual currency) compared to 2012, due in particular to SFR adapting to a strong competitive environment.
- Adjusted Net Income: €1.540 billion, down 9.7% compared to 2012.
- Earnings attributable to Vivendi SA shareowners: €1.967 billion, compared to €179 million in 2012. These earnings included the capital gain on the sale of Activision Blizzard, which was partially offset by the impairment of SFR’s goodwill.
- Cash Flow From Operations: €1.453 billon, up 19.8% compared to 2012.
- Financial Net debt: reduction to €11.1 billion at year-end 2013, compared to €13.4 billion at year-end 2012. It would amount to €6.9 billion including the disposal of the Maroc Telecom interest.
Universal Music Group
UNIVERSAL MUSIC GROUP (UMG) revenues were €4,886 million, up 12.8% at constant currency compared to 2012 (+7.5% at actual currency).
VIVENDI wrote, "At constant currency, excluding EMI recorded music, revenues were in line with the prior year, as the decline in physical sales was offset by the growth in digital and other revenues, with subscription and streaming revenue increasing by approximately 75% over the prior year. For the first time in 2013, yearly digital sales exceeded physical sales."
Recorded music best sellers for 2013 included EMINEM, KATY PERRY, IMAGINE DRAGONS, LADY GAGA, DRAKE, ROBIN THICKE as well as French-language artist, STROMAE. The company’s commercial and creative success set many records over the course of the year, including UMG becoming the first company to achieve all ten of the Top 10 songs on the U.S. charts and nine of the Top 10 albums in the U.S. In addition, UMG signed new agreements with leading labels including DISNEY MUSIC GROUP, GLASSNOTE ENTERTAINMENT and ROC NATION, as well legendary artists including NEIL DIAMOND, QUEEN, THE ROLLING STONES and FRANK SINATRA.
UMG’s EBITA of €511 million was up 1.4% at constant currency (-2.9% at actual currency) compared to 2012. Excluding restructuring and integration costs, and at constant currency, EBITA was up 9.5% compared to 2012, due to revenue growth and cost management efforts.
UMG achieved this performance despite a very difficult industry environment in JAPAN, the world’s second largest music market. The company’s integration of EMI remains on track to deliver the previously disclosed synergies of more than £100 million by the end of 2014.
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