Vivendi Reports Strong 2010; UMG Earnings Down, While Digital Shows Growth
March 1, 2011 at 4:02 AM (PT)
VIVENDI, the French parent company of UNIVERSAL MUSIC GROUP has reported strong 2010 financials, largely driven by earnings in its games division. UMG saw earnings plunge by 23.6% on a constant currency basis to eu471m. Revenues were down 3.6%, to eu4.45bn. Digital sales were the lone piece of good news, increasing 13.8%.
U.K.'s THE GUARDIAN notes, "when favorable currency movements are factored in full-year revenues at UNIVERSAL grew by 2% with the company saying that a combination of digital sales, currency and merchandising 'more than offset' declining physical product sales and 'slightly lower' music publishing activity. The company said that the double-digit drop in earnings for the full year was due to a change in 'sales mix,' restructuring costs and writedowns from underperforming investments which offset benefits from operating cost savings."
"VIVENDI achieved good results in 2010," said VIVENDI CEO JEAN-BERNARD LÉVY. "All indicators improved compared to 2009. More than ever, customers of digital content and services lie at the heart of our focus."