UMG Overall 2016 Revenues Rise To $5.57 Billion, Fueled By Streaming

Universal Music Group: Streaming Sells

UNIVERSAL MUSIC GROUP posted their best financial performance to date, with overall 2016 revenues rising to $5.57 billion, up 4.4% from last year's $5.41 billion.

Earnings before interest, taxes, and amortization (EBITDA) came to $681 billion, up 9.1% from 2015 in constant global currency.

Streaming helped drive those revenues in 2016, growing an impressive 58% in 2016, which helped offset steep declines in album and download sales. UMG’s operating income grew 10%, thanks to hits from artists like DRAKE, RIHANNA and ARIANA GRANDE as well as carryover sales from JUSTIN BIEBER. 

Recorded music revenues also rose to $4.63 billion, up 1.8% over the previous year’s $4.55 billion. Recorded music revenue from SPOTIFY and APPLE MUSIC also saw a solid increase, from 2015’s $1.06 billion to $1.64 billion, a 55.5% jump.

Per the company’s numbers, 2016 streaming figures equated to $137 million a month, which comes out to $32 million per week and $4.5 million a day. 

Merchandising from their BRAVADO division grew 16.1% thanks to “stronger touring activity” from its artists. Income from music operations also jumped 10.7% from 2015, totaling $726.9 million.

VIVENDI Chief Executive ARNUAD DE PUYFONTAINE expressed "cautious optimism" that streaming would continue to fuel profits. Still, UMG’s earnings weren’t enough to offset VIVENDI’s losses, with its core operating profits falling 23%. FRENCH TV network CANAL PLUS saw its weakest revenue in five years.

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