Universal revenues rise 13.5% in Q1 2013 as Vivendi profit dips

Universal Music Group saw revenues rise 13.5% in Q1 2013, while parent Vivendi has reported an 18.5% profit dip for the period with overall revenues remaining flat.

Digital sales represented 54% of recorded music sales globally compared to 46% in Q1 2012. While CFO Philippe Capron highlighted the now worldwide trend as a point of interest, he told investors that the first quarter typically sees a rise in digital sales.

Universal revenues hit €1,091 million in the first quarter, bolstered by better than expected results from EMI labels and partially offset by lower revenues in Japan and the disposal of the company’s VE/Fontana activities in 2012, according to the company.

UMG’s EBITA of €55 million was down 19.1% due to higher restructuring and integration costs and the benefit of the non-recurring gain on the disposal of the VE business in the prior year. Excluding the impact of those items, EBITA was up 6.2% as the lower revenues in Japan were offset by active cost management.

Vivendi says that recorded music best sellers in Q1 were led by the soundtrack from Les Miserables and new releases from Rihanna, Bon Jovi, Justin Bieber, Lil Wayne, Emeli Sandé, Andrea Bocelli and a 2013 Grammy Awards compilation.

Vivendi itself reported virtually flat revenues of €7,051 million – down 1% compared to Q1 2012, up 0.3% at constant currency.

Adjusted net income in Q1 2013 was €672 million, down 18.5% year-on-year, which Vivendi says is due to an EBITA decrease.

Vivendi EBITA was €1,344 million, down 17.2% (16.% at constant currency) year-on-year.

“Confronted with a very challenging economic environment, Vivendi’s subsidiaries are implementing the necessary adaptation measures,” said a note in the company’s financial report. “Consequently, first quarter 2013 results are in line with our outlook and enable us to confirm our annual guidance across all the Group’s businesses.”

Source: Music Week