UMG Q1 2016 Revenues Up Slightly, Streaming Leads, Physical Drops

Universal Music Group

UNIVERSAL MUSIC GROUP and parent company VIVENDI announced their Q1 2016 financial picture, with predictable results -- revenues are rising for digital sales, both streaming and subscriptions, while physical revenues continue to tumble.

VIVENDI earned €1 billion from the sale of its remaining 5.7% stake in video game company ACTIVISION BLIZZARD, with overall revenues at €2.491 billion. Adjusted earnings were €968 million, up 8.3% year-over-year.

UMG revenues were up slightly, €1.119 billion or six-tenths of a percent at constant currency, WITH adjusted earnings before interest and income taxes down 4%.

UMG passed the mark last year where streaming and subscription revenue made up the majority of digital revenues and that continued. Streaming and subscriptions earned €307 million for the company in the quarter and accounted for 59.7% of overall digital revenues. Physical sales declined 16.6%. Publishing earned €188 million, up 0.3 percent. Earnings from merchandise (and "other") fell 6.9% after 2015's increase of 3.5%.

The company's top five bestselling artists were JUSTIN BIEBER, RIHANNA, THE WEEKND, JAPANESE pop star TSUYOSHI NAGABUCHI and THE 1975. The company touting upcoming releases from LADY GAGA, NICK JONAS, MASSIVE ATTACK and SEAN MENDES to boost the bottom line this year.

NORTH AMERICA remains UMG's largest market, accounting for 43% of revenues, trailed by EUROPE (37%), ASIA (13%, up from 11%) and "rest of the world" at 7% (down 2% year-over-year).

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