UMG reported a solid Q1, as part of parent Vivendi‘s broader earnings statement. Driving the good news was revenue from music streaming which jumped 60% last quarter over the previous year.
The overall gain came “despite the accelerated decline in download sales and the continued decrease in physical sales.”
The highlights:
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Universal Music Group’s (UMG) revenues were €1,119 million, up 0.6% at constant currency compared to the first quarter of 2015 (+1.9% on an actual basis).
- Recorded music revenues grew 0.5% at constant currency thanks to growth in subscription and streaming revenues (+59.7%) despite the accelerated decline in download sales and the continued decrease in physical sales.
- Music publishing revenues grew 0.3% at constant currency, while merchandising and other revenues declined by 6.9% at constant currency due to lower touring activity.
- Recorded music best sellers for the first quarter of 2016 included carryover sales from Justin Bieber and The Weeknd, as well as new releases from Rihanna and the Japanese artist Tsuyoshi Nagabuchi.
- UMG’s income from operations was €102 million, up 18.6% at constant currency compared to the first quarter of 2015 (+15.8% on an actual basis) after adjusting for restructuring charges, as a result of lower operating expenses, due to a softer release schedule compared to the first quarter of 2015.
- UMG’s EBITA was €79 million, marginally down 0.2% at constant currency compared to the first quarter of 2015 (-4.0% on an actual basis) as the benefits of higher revenues and cost savings were offset by increased restructuring charges.