UMG Reports Profits, Cuts UK Staff, And Drops Prices In Poland
January 31, 2006 at 2:39 PM (PT)
Telecom and media behemoth VIVENDI UNIVERSAL has reported a 7% rise in fourth-quarter sales, driven by its mobile unit, which helped compensate for weaker music revenues. The company's UNIVERSAL MUSIC GROUP -- the world's largest record company -- reported revenues of $1.682 billion euros, down 1.7% on a comparable basis and down 5.2% on a comparable basis and at constant exchange rates. Music sales for the company rose just 2%.
In other UMG news, the comany is reportedly planning to cut up to 8% of its UK staff, a reduction that could see about 90 jobs axed from its 1,110 BRITISH workforce. The cuts have been ordered by LUCIAN GRAINGE, Chairman and CEO of the company's international division, who reportedly wants to increase investment in the company's A&R division.
Elsewhere on the other side of the pond, UMG's Polish branch is launching the "Ludzka Cena" (Fair Price) measure, which will see prices of UMG CDs in that country drop by as much as 30%, reports CZECH BUSINESS WEEKLY. "It was a natural thing to do when CDs aren’t selling and clients don’t accept the price," said UNIVERSAL MUSIC POLSKA Pres. ANDRZEJ PUCZYNSKI. "It took us a year and a half of negotiations with the head office to finally get them to accept our idea."