UMG Suffers A 2% Loss As Parent Vivendi Reports Positive Financials
August 31, 2011 at 4:18 AM (PT)
The financial picture for UNIVERSAL MUSIC GROUP parent company VIVENDI, was up in their latest financial report -- despite losses by UMG. THE FINANCIAL TIMES reports, "UNIVERSAL MUSIC GROUP, whose roster of pop acts includes LADY GAGA, JENNIFER LOPEZ and RIHANNA, suffered a 2% fall in sales to eu1.86 Billion and a 17% drop in earnings before interest, taxation and amortization to eu132 Million. Like its peers, UNIVERSAL has been struggling to get to grips with Internet downloading but it reported a 13.5% increased in digital music sales."
VIVENDI's upside came from increasing sales of digital games such as WORLD OF WARCRAFT and CALL OF DUTY.
CEO JEAN-BERNARD LEVY said “Over the past few months, VIVENDI has reached a significant milestone. The group has acquired a 44% interest in SFR, and TODAY owns the company entirely. We now have full control of all our assets and have simplified our organization. Vivendi has achieved an essential strategic objective on very favorable financial terms. Our group is growing by investing in networks, platforms and content. Organic growth and internal creativity enable us to offer consumers innovative digital services. As a world leader, our strategy also involves strengthening our position in high-growth countries such as BRAZIL. Despite the turbulent economic and financial environment, our operational indicators are increasing. We confirm our full year outlook for adjusted net income above eu 3 Billion, and for an increase in the dividend.”