Streaming ’more than offsets’ physical decline at UMG

PRESS RELEASE:

Universal Music Group’s (UMG) revenues amounted to €2,315 million, up 1.6% at constant currency compared to the first half of 2015 (+0.2% on an actual basis), driven by growth across all of its divisions.

Excluding a legal settlement income for the first half of 2015, revenues were up 3.0% at constant currency and perimeter.

Recorded music revenues grew 0.5% at constant currency thanks to growth in subscription and streaming revenues (+62.4%) which more than offset the decline in both digital download and physical sales.

Music publishing revenues grew 4.0% at constant currency, driven by increased subscription and streaming revenues, as well as growth in synchronization income.

Merchandising and other revenues were up 3.2% at constant currency thanks to stronger touring activity.

Recorded music best sellers for the first half of 2016 included new releases from Drake, Rihanna and Ariana Grande, as well as carryover sales from Justin Bieber and The Weeknd.

In the United States, UMG had four of the Top 5 most streamed albums, including all of the top three (Drake, Rihanna, Justin Bieber).

UMG’s income from operations amounted to €217 million, up 24.6% at constant currency compared to the first half of 2015 (+21.0% on actual basis). This favorable performance reflected both revenue growth and cost savings.

4/8 UMG’s EBITA amounted to €177 million, up 7.4% at constant currency compared to the first half of 2015 (+3.7% on an actual basis). EBITA included restructuring charges in the first half of 2015 and 2016, and a legal settlement income in the first half of 2015.