Universal Music revenues jump 2.2% in Q1

The figures were last week revealed by UMG’s parent company, Vivendi. Recorded music revenues grew by 3.6% in the first quarter compared to the first three months last year.

Streaming subscriptions and revenues grew to €1.01bn, showing an 11.1% increase, which compares to a 23.1% increase in the same period in 2020. Streaming now accounts for almost 68% of UMG’s recorded music revenues. Physical format hit €213m, a 9.1% spike, which Vivendi says was driven by better new releases and catalogue sales according to the label.

UMG’s publishing revenue was flat at €271m from quarter one last year to the first three months in 2021, although 6.9% organic growth was realised. The company made 16% less from the Merchandise and Other category in the first quarter this year than it did in the same period in 2020.

UMG’s best sellers for the first quarter this year included new releases from Japanese group King & Prince and US singer Justin Bieber, as well as continued sales from Ariana Grande, The Weeknd and Pop Smoke.

Vivendi confirmed that UMG would be going public in Amsterdam. “Vivendi will ask its shareholders at the Annual Shareholders’ Meeting to be held on June 22, 2021, to adopt a position on the plan to make an exceptional distribution in kind in the form of UMG shares to its shareholders, with completion expected in fall 2021,” a statement reads.

Vivendi also said that it would be hard to establish the impact of the ongoing pandemic on the business. “Vivendi continually monitors the current and potential consequences of the crisis. It is difficult at this time to determine how it will impact Vivendi’s results in 2021,” the statement adds.

“Businesses related to live performance are still being more impacted than others. Nevertheless, the Group remains confident in the resilience of its main businesses It continues to make every effort to ensure the continuity of its activities, as well as to best serve and entertain its customers and audiences while complying with the guidelines of authorities in each country where it operates.”

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