Universal yearly digital sales exceeded physical for first time in 2013

Universal Music Group saw its yearly digital sales outstrip physical for the first time in 2013, according to the company’s latest financial report.The decline in physical sales at the major was offset by growth in digital and other revenues, with subscription and streaming revenue increasing by approximately 75% over the prior year.

UMG revenues were up 12.8% at constant currency (up 7.5% actual) compared to 2012, hitting €4.9 billion.

EBITA of €511 million was up 1.4% at constant currency (down 2.9% actual) compare to 2012.

Excluding restructuring and integration costs, at constant currency, EBITA was up 9.5% compared to 2012 “due to revenue growth and cost management efforts”.

The company says that its integration of EMI remains on track to deliver the previously disclosed synergies of more than £100 million by the end of 2014.

Meanwhile, parent Vivendi saw adjusted net income drop 9.7% compared to 2012 to €1.540 billion.

Revenues for the media conglomerate were up 0.2% at constant currency (down 2% actual) at €22.135 billion.

EBITA of €2.433 billion was down 20.6% at constant currency (down 23.1% actual).

Source: Music Week