UMG Revenues Up 13.5% For 2013's First Quarter

Q1 Financials

UNIVERSAL MUSIC GROUP's parent company VIVENDI has reported financial results for Q1 2013. The highlights:

* Results in Line with Forecast for First Quarter 2013
* Full Year Guidance Confirmed
* Revenues: eu7,051 million, virtually stable (down 1.0% and up 0.3% at constant currency) compared to first quarter 2012.
* EBITA: eu1,344 million, down 17.2% and 16.1% at constant currency compared to first quarter 2012.
* Adjusted Net Income: eu672 million, down 18.5% compared to first quarter 2012, mainly due to the EBITA decrease.

The company noted, "Confronted with a very challenging economic environment, VIVENDI’s subsidiaries are implementing the necessary adaptation measures. Consequently, first quarter 2013 results are in line with our outlook and enable us to confirm our annual guidance across all the Group’s businesses."

Universal Music Group

UNIVERSAL MUSIC GROUP (UMG)’s revenues were eu1,091 million, up 13.5% compared to first quarter 2012 (+15.5% at constant currency). Revenues were bolstered by better-than-expected results from EMI labels, partially offset by lower revenues in JAPAN as well as the disposal of the company's VE/FONTANA activities in 2012.

Digital sales represented 54% of recorded music sales compared to 46% in first quarter 2012. Recorded music best sellers this quarter were led by the soundtrack from "Les Misérables," new releases from RIHANNA, BON JOVI, JUSTIN BIEBER, LIL WAYNE, EMELI SANDÉ, ANDREA BOCELLI and a compilation of songs by 2013 GRAMMY AWARD-winning artists.

UMG’s EBITA of ue55 million was down 19.1% due to higher restructuring and integration costs and the benefit of the non-recurring gain on the disposal of the VE business in the prior year. Excluding the impact of those items, EBITA was up 6.2% as the lower revenues in JAPAN were offset by active cost management.

The group confirmed to be on track to deliver the EMI RECORDED MUSIC-related expected synergies of more than £100 million.

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