| 28 Nov 2023
Positive EBITA for Vivendi is reflected by good performance of UMG and GVT

MUMBAI: Due to lower numbers of recorded music and merchandising sales, Vivendi's Universal Music Group (UMG) posted a fall of two per cent in revenue at constant currency and perimeter, which is € 984 million during the first quarter of 2014. After taking into account the impact of the Parlophone Label Group disposal in 2013 and the current currency revenues were down by 9.8 per cent. However, the first quarter of 2013 UMG revenue was € 1,091 million.

The music company's quarterly earnings before interest, taxes and amortisation (EBITA) was € 56 million, up 72.5 per cent at constant perimeter and currency (+2 per cent at actual currency) compared to the first quarter of 2013. This is attributed to the benefit of overhead savings and lower restructuring costs, partially offset by lower revenues and loss of margins from the divested Parlophone Label Group repertoire. Vivendi pointed that the positive EBITA change at constant perimeter and currency, reflects the good performance of Universal Music Group and GVT.

Disney's 'Frozen' soundtrack supported by strong carryover sales from Lorde, Katy Perry and Avicii and a new release from Masaharu Fukuyama, are the bestsellers in the recorded music category. Although, the music company benefitted from significant growth in subscription and streaming that growth was not enough to fully offset the decline in physical and digital download sales.

UMG had signed a multi-year distribution agreement with Glassnote Entertainment Group which includes such artistes as Childish Gambino, CHVRCHES, Mumford & Sons, and Phoenix. In April, UMG acquired UK-based Eagle Rock Entertainment, an independent producer and distributor of music programming. This acquisition enhances UMG's presence in top quality audio-visual content such as live concert footage, documentaries and films.