Universal Music Group’s revenues grew to €1.81 billion ($2.17 billion) in the first quarter of 2021, up 9.4% at constant currency and perimeter, thanks to big-selling (and streaming) releases from Justin Bieber and King & Prince, as well as sustained sales from 2020 hitmakers The Weeknd, Ariana Grande and Pop Smoke.
Recorded music revenues jumped 10.8% to €1.483 billion ($1.78 billion) thanks to sustained growth in subscription and streaming revenues — which on their own increased 19.6% to just over €1 billion ($1.21 billion). Physical music had another solid set, raking in €213 million ($255.8 million), up 9.1% compared to Q1 of 2020.
And then you have downloads. A year ago the drop in sales amounted to a 26% decline, while this year the fading format tumbled 40.9% to just €81 million ($97.3 million). Licensing and other revenue, meanwhile, had a flat quarter, down 0.1% to €181 million ($218 million).
Music publishing revenues grew by 6.9% to €271 million ($325 million), also driven by increased subscription and streaming revenues.
Merchandising and other revenues again felt the effects of the pandemic, down 10% compared to the first quarter of 2020. The drop was attributed to a continued lack of touring activity, though the company said retail and direct-to-consumer sales have improved in recent months.
Parent company Vivendi’s Q1 earnings totaled €3.901 billion, an increase of 5% (at constant currency) on the same period the previous year. The French conglomerate pointed right at UMG for the group increase, as well as a 40% jump for Editis. All other major units, including Canal+ Group and Havas Group, were either flat or down.
Later this year, Vivendi plans on spinning off UMG with a listing on the Amsterdam Euronext exchange. When completed, Vivendi will keep only a 20% stake in UMG, the world’s largest music company, which it has owned since 2004.
This is developing. Check back for updates.
