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
Nielsen Examines Radio's Reach With Black And Hispanic Consumers
Report: Radio Industry's First-Ever Social Media Study
iHeartMedia Charleston Expands Brian Clearly Duties At WXLY, Tyler Reese Named Program Director At WEZL
In Brief - August 4, 2015
August 3, 2015
Hubbard Radio Purches 30% Stake In PodcastOne
Orlando Davis Extends Contract With WiLD 94.1/Tampa
Mix 96.5/Houston Set To Launch The Dave, Mahoney & DK Morning Show
INgrooves Names Gabriella Ianni Director/Promotion & Marketing
In Brief - August 3, 2015
July 31, 2015
Universal Music Group Extends Lucian Grainge Deal
WOGL/Philly Morning Show Host Ross Brittain Announces Retirement
In Brief - July 31, 2015
July 30, 2015
CBS Radio Extends Scott Shannon
iHeartMedia Reports Results For 2015 Second Quarter
Benztown Promotes Christopher "Jack" Johansing To Marketing Director
July 29, 2015
iHeartMedia Charlotte Names Keith Hotchkiss Market President
Pierre Bouvard: Radio's Delivers On Amazon Prime Day
In Brief - July 29, 2015
July 28, 2015
Cumulus Appoints Brian Thomas As PD For WLS-FM/Chicago
AT&T To Activate FM Chips On Android Smartphones
BroadbandTV & BMG Form Strategic Alliance To Support New Generation Of Music Artists
Chicago Radio Legend John Records Landecker To Sign Off After 40 Years On-Air
Cumulus-Buffalo Re-Signs Shredd and Ragan For Mornings At WEDG
Rare Job Ops at 98 Rock/Baltimore
In Brief - July 28, 2015
Music News
Dr. Dre Confirms New Album Compton Out This Week
Quick Hits: The Weeknd, Charlie Puth, Lana Del Rey, Gwen Stefani & Gavin Rossdale, American Roots Festival, alt-J, Ed Sheeran / D'Angelo / Bill Withers
Jill Scott Scores Chart-Topping LP
Quick Hits: U2, Lady Gaga, Andre 3000, Madden NFL 16 soundtrack
Quick Hits: One Direction, The Voice, Queen Latifah & Mary J. Blige, The Gaslight Anthem, Paul McCartney
Kanye, Sam Smith, The Who & Many More Announced For iHeartRadio Music Festival
FMQB Retro-Active: Ken Sharp Talks to Cherie Currie, and Reviews Live Releases From The Who and The Rolling Stones
Quick Hits: Dr. Dre, U2, Zayn Malik, Gary Clark Jr.
Macklemore Talks New Album, Relapse Into Drug Use
Quick Hits: Meghan Trainor, Justin Bieber, Janelle MonŠe, Keith Richards, Lollapalooza, Chance The Rapper, Neil Young
Imagine Dragons, Jack Johnson Join Farm Aid 30
Quick Hits: Rise Against, Keith Richards, Puscifer, Judas Priest & Mastodon, Mat Kearney, Circa Survive
Rapper Future Hits #1 With Surprise Album
Quick Hits: U2 & Lady Gaga, Disclosure & Sam Smith, Ed Sheeran, Mariah Carey, Bobbi Kristina Brown, Guns N' Roses, Sevendust, Joseph Jackson
Ed Sheeran TV Special To Air On NBC
FMQB NOW

Jonathan Shuford, PD
WRVW/Nashville

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!