Vivendi Reports First Half Revenue, UMG Up Thanks To EMI
August 29, 2013
Vivendi has reported its financial results for the first half of 2013, with the multinational company's overall revenue down slightly, though Universal Music Group had a successful six months. UMG revenue in the time period was up 16.3 percent from the year before, in part due to the acquisition of EMI. Revenue was €2.236 million, or approximately $2.96 million. Digital sales in the quarter made up 53 percent of recorded music sales, compared to 47 percent a year ago. Best-selling releases in the first half of 2013 included Rihanna, Imagine Dragons, Justin Bieber's acoustic Believe record and the Les Miserables soundtrack.
UMG’s EBITA of €143 million (or roughly $189.36 million) represented a decrease of 8.3 percent compared to the first half of 2012, including restructuring and integration costs related to the acquisition of EMI Recorded Music, as well as unfavorable currency movements, a tough comparison against strong recorded music releases over the first half of 2012 and specific difficulties in the Japanese market.
Excluding restructuring and integration costs, UMG’s EBITA was up 6.2 percent compared to first half 2012. Synergies related to the EMI Recorded Music acquisition are projected to be more than £100 million and remain on track to be delivered by the end of 2014.
On July 1, Vivendi and Universal Music Group completed the disposal of Parlophone Label Group. This sale represented the final significant divestment required by the European Commission in connection with the EMI acquisition. The total net sale proceeds amounted to approximately €700 million #or around $926.9 million) in cash.
Vivendi's overall first half revenue was down 1.5 percent to €10.842 billion, or almost $14.4 billion.
In a statement, Jean-François Dubos, Chairman of the Management Board/CEO of Vivendi said, "Vivendi’s subsidiaries are confronted with a challenging economic environment and highly competitive markets. In this context, the Group’s media businesses have resisted, benefiting from the first positive impacts of the acquisitions and growth drivers they put in place. The Group’s priorities remain the closing of the announced deals, cash flow generation, the pursuit of SFR’s adaptation to new market conditions and the achievement of synergies’ generated by the acquisitions.
Vivendi has indeed taken key steps forward in the strategic review process being carried out by its Supervisory Board. The Group will divest most of its interest in Activision Blizzard and has entered into exclusive negotiations to sell Maroc Telecom group. The proceeds of these transactions will provide Vivendi with greater financial flexibility. SFR and Bouygues Telecom are working on a project to share a portion of their mobile network. In addition, Universal Music Group completed the sale of the EMI Recorded Music assets required by the regulator and the integration of the prestigious label. Canal+ Group successfully relaunched the D8/D17 channels.
Vivendi is realizing at its own pace its announced restructuring aimed at achieving new growth milestones. Our priority remains the creation of shareholder value."