Universal Music Group Revenues Fall Again

For the first half of 2010, Universal Music Group's (UMG) revenues fell 5.4% compared to the same period last year (or 7.9% decline at constant currency). The label group blamed a weak release schedule and reduced demand for physical product for the drop.  Hoepful signs included growth in merchandise and digital sales. Highlights of the report include:

• UMG's EBITA was EUR159 million, a 24.6% decline compared to the same period last year. Lower revenues and an unfavorable sales mix more than offset operating cost savings and a reduction in restructuring charges.
• Major recorded music sales included Lady Gaga, Black Eyed Peas, Eminem, Justin Bieber, Florence & The Machine and Coeur de Pirate in addition to the debut release from Drake.
• New mobile music deals with major telcos such as Singapore's SingTel and India's Reliance Communications.
• In the second half 2010, the albums slate includes artists such as Black Eyed Peas, Kanye West, Mariah Carey, Michel Sardou, Florent Pagny, Akon, Zazie, Maroon 5 and Duffy.
• Vevo, launched in December 2009 in the United States, is already the #1 music video website with 44.7 million unique viewers in July.