UMG Revenue Up 2.1% For First Nine Months Of 2012
November 14, 2012

Universal Music Group saw a 2.1 percent increase in revenue for the first nine months of 2012, compared to 2011. Revenue for the first three quarters of the year was $3.68 billion. However, revenue was down 3.4 percent at constant currency, though an 8.6 percent increase in digital sales and higher license income were "offset by falling demand for physical product." EBITA fell by 2.5 percent to approximately $302 million.

Notably, the gap between physical and digital sales has tightened in those nine months. CD sales were down by 14.2 percent to approximately $1.29 billion, but digital sales rose 8.6 percent and reached $1.16 billion.

Best selling releases for the first nine months of 2012 included new releases from Justin Bieber, Maroon 5 and Nicki Minaj, as well as new artists as Lana Del Rey, Carly Rae Jepsen and Gotye. Notable UMG releases for the fourth quarter include Taylor Swift, Rod Stewart, Rihanna, The Rolling Stones and Ne-Yo, among many others.

As for the recent deal to acquire EMI's recorded music division, the company noted, "As a result of this strategically-compelling transaction, UMG further strengthens its presence throughout the world, especially in the United States, Japan, and Germany - the top three leading international music markets. This acquisition also creates even more opportunities for new and established artists, while expanding UMG's presence on all of the major digital music platforms and services. Moreover, the sale process of certain EMI Recorded Music assets is underway and these divestments are generating robust interest. Team integration is also progressing according to plan. The objective of £100 million annual synergies has been maintained."

Overall, UMG parent company Vivendi saw its revenue down by 1.6 percent to $8.48 billion in the first nine months of the year. Adjusted net income fell 2.9 percent to $845 million, with EBITA down 7.3 percent to $1.77 billion.

In related news, Vivendi CFO Philippe Caprone spoke on the UMG-EMI deal yesterday, as well as the label's fiscal report. According to Musicweek, Caprone told investors, "Management focus is currently on EMI integration, which is moving ahead at full speed." He also noted that "The disposal of ... the EMI businesses which we'll had to divest, is underway and is fully on track. And we expect to be in a position to report good news in the coming months regarding this process."

Caprone added, "For music, we unfortunately have to report a relatively disappointing Q3. You remember that we had a brilliant Q1. We had an average Q2. And now we have a Q3 which is not looking as good. We are used, of course, to those roller coaster effects, which are mostly release calendar driven. The good news is that we expect a very strong Q4 on the back of a more promising release schedule."




 
Breaking News
eQB NOW
The Week In Review: 10/20-10/24
Beasley Broadcast Group Issues Third Quarter Results
Pandora Reports Q3 2014 Financial Results
Deezer Acquires Stitcher
In Brief - October 24, 2014
October 23, 2014
Nielsen Reports Third Quarter 2014 Results, Announces $1B Share Repurchase Authorization
iHeartRadio Now Available For Use In Apple's CarPlay
In Brief - October 23, 2014
October 22, 2014
Pandora AMP Allows For "Large Scale" Artist Analytics
Spanish Broadcasting System Names Eric Garcia Radio Revenue Chief, GM, New York Market
The Conclave To Honor Ginny Morris With The Rockwell Award
In Brief - October 22, 2014
October 21, 2014
Report: Ron Fair Departs Virgin Records
Adobe, Nielsen To Create Comprehensive Measurement Platform For Digital Content
DMR/Interactive Names Doug Smith VP/Marketing Strategy
Triton Digital's August 2014 Ranker: Major News Events Show Impact On Top 20 Streaming Audio Markets
October 20, 2014
iHeartMedia San Francisco Names Mark Adams PD of KYLD & KIOI
Premiere Networks Promotes Claudine Cazian To VP/Programming & Branded Entertainment
Entercom Names Carlos Lamadrid VP/National Sales, Strategic Partnerships
Pandora Hires Steve Bené As General Counsel
In Brief - October 20, 2014
October 17, 2014
In Brief - October 17, 2014
The Week In Review: 10/13-10/17
October 16, 2014
Music News
Taylor Swift Talks Pop Genre, 1989 & More
The Week In Review: 10/20-10/24
Quick Hits: The Grammys, Sam Smith, Foo Fighters, The Grateful Dead
Taylor Swift Reveals Songs of 1989
One Direction Goes "On The Road Again"
Quick Hits: American Music Awards, Justin Timberlake, New Now Next Awards, Foo Fighters, Jake Miller, ShipRocked
Florida Georgia Line, Bob Seger Lead Sales Chart
Quick Hits: Taylor Swift, Foo Fighters, Gwen Stefani, Cold War Kids
Charli XCX, Haim and More Contribute to Hunger Games
Quick Hits: Meghan Trainor, Smashing Pumpkins, Milky Chance
U2 Sits Down For Intimate Radio Special
Quick Hits: Coldplay, Gwen Stefani, Foo Fighters, Dropkick Murphys, Madisen Ward and the Mama Bear
One Direction Reveal Four Tracklist
The Week In Review: 10/20-10/24
Quick Hits: Iggy Azalea, U2, Snoop Dogg / Pharrell, iHeartRadio Fiesta Latina
FMQB NOW

Christopher K
APD/MD, KDND & KUDL
Sacramento

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!