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
CMG Tampa Appoints John E. Kage Dir. of Branding & Programming at Hot 101.5 FM
In Brief - November 25, 2015
November 24, 2015
FCC Fines Drawing Scrutiny In Congress
In Brief - November 24, 2015
November 23, 2015
Bill Hess Named OM At Cumulus-Washington, D.C.
In Brief - November 23, 2015
November 20, 2015
Adams Radio Group Of Delmarva Names Jay Gleason Operations Manager
iHeartRadio Presents Adele¹s Album Premiere Live from Joe¹s Pub 
Radio Mercury Awards Announces Advisory Council
November 19, 2015
Westwood One: The State of American Podcasting
Nielsen: Connecting With Political Millennials Through Music
Jacobs Media Webinar: 10 Mega Trends That Impact Radio
November 18, 2015
Republic Records Promotes Ben Adelson To SVP/A&R
Y100’s TC Wins Dancing with the Savannah Stars
Greater Media's Magic 106.7 To Become Boston's Christmas Station
November 17, 2015
Alissa Pollack To Be Honored At T.J. Martell Foundation’s 16th Annual New York Family Day
Cash Money Records Announces Annual Turkey Giveaways in Miami & New Orleans
Amanda "AJ" Malone Joins iHeartMedia/Indianapolis
Jacobs Media Blogs Radio’s Days as a Primary Traffic Source May Be Numbered
November 16, 2015
Pandora to Acquire Key Assets from Rdio
Apple To Close Beats Music
Entercom Adds Ashley O. To Mornings On WSFS/Miami
Music News
Adele Announces European Tour Dates
Quick Hits: Adele, Eagles of Death Metal, Charli XCX, Joe Jonas
Adele's 25 Smashes Sales Record
Quick Hits: Charlie Puth, Coldplay, Jack Ü
Bieber, One Direction Lead Billboard 200 Shakeup
One Direction, The Weeknd Win Multiple AMAs
Rihanna Announces Anti World Tour, Teases New Album
Foo Fighters Release Free EP
Quick Hits: Coldplay, U2, The Cure, Wilco
Chris Martin Talks Influences On New Coldplay Record
Quick Hits: Foo Fighters, Justin Bieber & One Direction, American Music Awards, Paris attacks, Tori Kelly
Adele's 25 Won't Be On Streaming Services
Quick Hits: Kelly Clarkson, Missy Elliott, Jimmy Eat World, Freddie Mercury, Bonnaroo
Zayn Malik Opens Up About One Direction Exit
Quick Hits: Firefly Music Festival, Eagles of Death Metal, Grammy Hall of Fame

Manny Simon
VP/Adult Formats,
Republic Records

FMQB Member Login

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