Vivendi Reports Universal Music Group's Revenues Down 2% In Q1
May 16, 2014 at 3:49 AM (PT)
UNIVERSAL MUSIC GROUP's parent company VIVENDI has reported Q1 financials showing UMG revenues were €984 million, down 2.0% at constant currency and perimeter. The company noted, "This change is due to lower recorded music and merchandising sales. Revenues were down 9.8% at current currency and taking into account the impact of the PARLOPHONE LABEL GROUP disposal in 2013."
Recorded music revenues benefited from significant growth in subscription and streaming, although with lower download revenues across the industry this quarter, that growth was not enough to fully offset the decline in physical and digital download sales.
UMG’s EBITA was €56 million, up 72.5% at constant perimeter and currency (+2.0% at actual currency) compared to the first quarter of 2013. VIVENDI wrotes, "the favorable performance reflected the benefit of overhead savings and lower restructuring costs, partially offset by lower revenues and loss of margins from the divested PARLOPHONE LABEL GROUP repertoire."
In FEBRUARY, UNIVERSAL MUSIC GROUP signed a multi-year distribution agreement with the independent music company GLASSNOTE ENTERTAINMENT GROUP. UMG will be the exclusive distributor of GLASSNOTE’s recordings, which include such artists as CHILDISH GAMBINO, CHVRCHES, MUMFORD & SONS and PHOENIX. UMG will also distribute GLASSNOTE’s newly launched label, RESOLVED, a company designed to offer individualized support and services to entertainment entrepreneurs, emerging producers and independent labels.
In APRIL, UMG acquired U.K.-based EAGLE ROCK ENTERTAINMENT, an independent producer and distributor of music programming. "This acquisition enhances UMG’s presence in top quality audio-visual content such as live concert footage, documentaries and films," added VIVENDI. EAGLE ROCK’s library includes nearly 2,000 hours of programming and more than 800 titles, enhancing the value of UMG’s catalog.