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
Cumulus Media Names Sid Kelly Program Director At WABD/Mobile
In Brief - October 12, 2015
October 9, 2015
Report: Most See P1 Station Like A Friend
Greater Media Collects 200,000 Bottles of Water For South Carolina Flood Victims
October 8, 2015
Emmis Announces Second Quarter Earnings
WiLD 94.9 Names Julian On The Radio Afternoon Drive Host
Entercom Atlanta Promotes Michael Chase to Director of Marketing & Promotions At Star 94
KNEV/Reno Turns On Classic Hip Hop
Benztown Partners With Dash Radio
October 7, 2015
Ellen K To Launch A New Morning Show On KOST/Los Angeles
Pandora To Acquire Ticketfly
Slow Jams Launches New Throwback Edition
Steven Meyers Promoted To Director/Digital Operations At Greater Media
October 6, 2015
Bubba The Love Sponge Apologizes For Ratings Tampering
Cumulus Launches Classic Hip Hop 98.3 The Vibe
Jon Platt Named CEO At Warner/Chappell
CBS Radio Names Sam Rogers VP, National Sales & Corporate Partnerships
In Brief - October 6, 2015
October 5, 2015
Beasley Media Group Announces Actions Against Todd Clem AKA, ‘Bubba The Love Sponge’
iHeartMedia Presents "iHeartRadio Jingle Ball 2015 Concert Tour"
Steve Mills Named iHeartMedia’s Chief Information Officer
Puff Daddy Brings Bad Boy To Epic Records
Charlamagne Tha God Renews With iHeartMedia
In Brief - October 5, 2015
October 2, 2015
Music News
Janet Jackson's Unbreakable Bows at #1
Quick Hits: Fall Out Boy & Demi Lovato, Macklemore & Ryan Lewis, Foo Fighters, Gorillaz
Taylor Swift Talks Grammys, Life After 1989
Quick Hits: Bruno Mars, Kendrick Lamar, Green Day, Radiohead, Mariah Carey, Three 6 Mafia
Janet Jackson, N.W.A. and More Up For Rock Hall
Quick Hits: Rihanna, Ciara, Deadmau5
Selena Gomez Maps Out Revival Tour
Quick Hits: RIAA Gold & Platinum, Cage The Elephant, Kurt Cobain, American Music Awards / Jennifer Lopez
Quick Hits: Kendrick Lamar, Brian Fallon, Ten Commandos, The Cure, Lollapalooza South America, JoJo, Courtney Barnett
Fetty Wap Debuts Atop Billboard 200 Chart
Quick Hits: Miley Cyrus & Flaming Lips, Will Smith, Maynard James Keenan, Ben Folds
Deluxe Edition of Sam Smith's In The Lonely Hour Announced
Quick Hits: Selena Gomez, Miley Cyrus, Megadeth, Beastie Boys
Quick Hits: Fifth Harmony, Train's Pat Monahan, Seal, Roger Waters
Beyoncé, Jay Z & Prince Headlining Massive TIDAL X Charity Concert

Mark Adams
San Francisco

FMQB Member Login

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