UMG'S Q3 SALES UP, EBITA SLUMPS Lars Brandle – Billboard Universal Music Group today posted a 6.8% rise in Q3 sales to €1.17 billion ($1.7 billion), on the back of hit albums from Nelly Furtado, Amy Winehouse, Mika, Maroon 5, Kanye West and 50 Cent. But the music giant's earnings before interest, tax and amortisation (EBITA) for the three months to Sept. 30 fell by 16.7% to €115 million ($227 million), compared with the corresponding period in 2006.
For the first nine months, UMG's revenues decline slightly to €3.265 billion ($4.78 billion). The company said revenues from the BMG Music Publishing and Sanctuary Group acquisitions partly offset lower product sales and license income. UMG also blamed adverse currency movements for the shortfall.
UMGs digital sales rose 47% to €488 million ($715 million) during the three-month period. Digital formats now account for 15% of UMG revenues, against 11% in 2006.
During the same period, UMG's EBITA slumped €98 million ($143 million) to €335 million ($491 million), because of "a difficult recorded music market, unfavourable currency movements and an adverse sales mix offset," the music major said.
Parent company Vivendi generated EBITA of €1.335 billion ($1.96 billion) for the three months period, on revenue of €5.42 billion ($7.9 billion) at constant currency rates, up 10.9%.
In the first nine months of the year, Vivendi registered EBITA of €3.93 billion ($5.76 billion), and grabbed sales of €15.643 billion ($22.9 billion) at constant currency. |