Universal Music: BMG Deal Drives Flat Q2 Revenue


Universal Music is not only the world’s largest music company, it’s one of the only ones that isn’t shrinking fast (thanks in large part to acquisitions). UMG’s parent company Vivendi released mid-year results, and the music unit put in a good performance compared to peers like Warner Music and EMI. Second quarter revenues decreased just -0.8%, to 1 billion euros, while EBITDA increased 5.8%, to 163 million euros. 

(Note: the numbers aren’t quite as relatively good as they look: The BMG acquisition probably made a material contribution to Q2 revenue.  UMG’s revenue declined 9% year over year in Q1, almost as bad as the 13% plunge EMI logged in Q2.)

Like its competitors, UMG plays up the performance of its digital sales, which it said increased 50% in the first half of 2007, though it doesn’t disclose an actual number. As at other companies, digital sales aren’t moving fast enough to make up for the drop in physical sales. On a more positive note, UMG has six of the top 10 singles on the Billboard chart. Release.