Universal Music Revenue Falls Another 2% Despite 13.5% Rise In Digital Sales
For the first half of 2011, Universal Music Group's revenue decreased 1.9% to $2.64 billion USD a 1.9% decrease compared to the first half of 2010 (-2.0% at constant currency) Digital music sales grew 13.5%, but failed to offset falling demand for physical product. Revenues in the second quarter increased by 0.6% at constant currency.
UMG's EBITA (earnings before income taxes and amortization) was $189 million USD, a 17.0% decrease compared to the first half of 2010 (also -17.0% at constant currency). Changes in the sales mix and restructuring charges associated with the reorganization plan announced last year were offset by operating cost savings and UMG's shares of a legal settlement with LimeWire.
EBITA before restructuring charges declined 6.5% at constant currency in the first half of the year. But a look at the second quarter alone shjowed a rebound in the US and the EBITA increasing by 7.7% before restructuring charges and at constant currency.