Yesterday saw the latest financial results published by Universal Music Group and Warner Music Group, providing a first pulse-reading for the major labels in 2012. Vivendi subsidiary UMG reported reveneus increasing 9.1% to €961m (around $1.28bn) year-on-year, with earnings before interest, taxes and amortisation (EBITA) up 47% to €68m ($90.8m). Digital accounted for 39.8% of UMG’s recorded music revenues, although the label group has not said how much digital grew year-on-year. Meanwhile, WMG reported revenues of $628m for the first quarter of 2012, down 8% year-on-year. The company posted a net loss of $36m for the quarter, and said that its digital revenues rose 7% to $235m in Q1 – 37.4% of total revenues. For recorded music specifically, WMG’s digital revenues rose 8% to $222m in Q1, accounting for 44.1% of its global recorded music sales, and 58.3% in the US. As a comparison, WMG’s digital recorded music sales grew 6.8% between the first quarters of 2010 and 2011.
UMG and WMG reveal their first-quarter financials
May 16th, 2012 by Music Ally