Universal Music Group (UMG) recently posted a slide in third quarter earnings, a result of worsening CD sales. For the three-month period, EBITDA (earnings before interest, taxes, depreciation, and amortization) slipped to €115 million ($169 million), a near-17 percent dip from €138 million ($202 million) previously. The revenue side showed improvement, moving upward 7 percent to €1.17 billion ($1.72 million). The results were packaged into a broader financial review by Vivendi, which issued results across its various media properties.
Other major label groups are also weathering rocky financial results, thanks to a free-falling physical disc. But Universal is easily the largest of the four, and that makes its financial report all the more important. Discussing the trend, Vivendi pointed to a "difficult recorded music market, unfavorable currency movements and an adverse sales mix" for its lukewarm results.
Meanwhile, the digital story continues to grow, just not fast enough to offset broader physical declines. For the first nine months of this year, digital revenues jumped 47 percent to €488 million ($716 million). Digital assets now comprise 15 percent of the broader revenue total, up from 11 percent previously.
Vivendi Earnings Summary
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