Universal Music Group Revenue Up In First Half Of 2012
August 30, 2012
Universal Music Group saw a 3.2 percent revenue increase in the first six months of 2012, as its parent company Vivendi reported its latest quarterly fiscal results. UMG revenue was 1.922 million Euros (or approximately $2.4 million) in the first half of the year, up 3.2 percent from the first half of 2011. UMG's top selling releases in the first of the year included Justin Bieber, Madonna and Nicki Minaj, as well as new acts such as Gotye and Lana Del Rey.
UMG's first half increase was attributed to an increase in publishing revenue and improved music sales in North America. In its report, Vivendi said, "It was also due to favorable currency movements. Revenues were down one percent at constant currency. An 8.9 percent increase in digital sales and higher license income almost offset the falling demand for physical product and lower merchandising revenues. First half 2011 also benefited from the success of Lady Gaga's Born This Way album."
Overall, Vivendi saw its first half revenue drop 1.2 percent to 14.1 billion Euros (or approximately $17.7 billion) while its EBITA was down 12.7 percent to 2.9 billion Euros (or roughly $3.639 billion).
As for the UMG-EMI merger, Vivendi said in its statement that "The acquisition of EMI Music’s recorded music activities is currently subject to the approvals from certain regulatory authorities, although approval has already been received from Japan, New Zealand, and Canada." However, Vivendi finance head Philippe Capron elaborated, according to Reuters, saying that the company has "had constructive discussions for a long time with the regulators." He added that, "We are committed to the deal. At the end of the day, whatever remedies will have to be given, it will still be a very interesting deal for us. We are cautiously confident in a positive outcome."