Vivendi Reports Rising Revs, Plans Shareholding Structure Change For Universal Music Group

Plans Changes For UMG's Shareholder Structure

UMG's parent company, VIVENDI SA, said THURSDAY (5/17) that its first-quarter revenue rose 16% and that it is studying the shareholding structure of its subsidiary, UNIVERSAL MUSIC GROUP. The French media group said revenue for the three months was 3.11 billion euros ($3.67 billion) compared with EUR2.68 billion in the same period last year.

VIVENDI attributed the revenue increase to its stake in advertising company HAVAS, which was consolidated in the group last JULY. HAVAS generated revenues of EUR482 million in the first quarter, the company said.

The company reported that its supervisory board has approved the management board's proposal to examine and carry out the necessary preliminary legal operations required for a potential change to its subsidiary UNIVERSAL MUSIC GROUP's shareholding structure. VIVENDI said that the management board will present various options for such an evolution.

UNIVERSAL MUSIC GROUP had a strong increase in operations with a 31.5% growth in subscription and streaming revenues at constant currency and perimeter and 7.2% organic growth at the end of APRIL after 4.5% at the end of MARCH.

Recorded music revenues were up 5.9% at constant currency and perimeter as growth in subscription and streaming revenues (+31.5%) more than offset the decline in physical (-26.2%) and download (-25.6%) sales. Physical sales were particularly strong in the first quarter of 2017, notably driven by the soundtrack releases from "La La Land," "Fifty Shades Darker," and "Moana." For the first quarter of 2018, physical sales were also impacted by the timing of releases, with slippage into the second quarter in some markets, notably JAPAN, and the continued transformation of the music business. Recorded music best sellers for the first quarter of 2018 included the BLACK PANTHER soundtrack, a new release from MIGOS, and carryover sales from POST MALONE, IMAGINE DRAGONS, and KENDRICK LAMAR.

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