Universal Music Group’s first quarter results have been released courtesy of its majority parent Vivendi. The company announced today (April 22) that UMG will go public in Amsterdam in autumn 2021.
For now, let’s stick with the first three months of this year … another impressive time for UMG and its CEO and Chairman, Sir Lucian Grainge.
According to Vivendi’s results, Universal Music Group’s total revenue – including music recordings, publications and other revenue streams – was EUR 1.81 billion (US $ 2.20 billion) in the first quarter, up 9.4% corresponds to the previous year.
Just because we know MBW readers appreciate these stats: That $ 2.20 billion quarterly revenue was $ 24.5 million per day, or … yep … just over $ 1 million per hour for the entire first quarter.
Universal Music Group had recorded revenue of EUR 1.48 billion (US $ 1.80 billion) in the first quarter, an organic increase of 10.8% (that is, at constant exchange rates and outlines).
The star in the results of the first quarter of UMG shouldn’t be surprised by now: streaming.
The format achieved sales of EUR 1.01 billion (USD 1.23 billion) for Universal’s music business in the three months, an increase of 19.6% over the previous year.
That was approximately $ 13.6 million per day, or $ 568,000 per hour, for the first quarter.
There was also good news for UMG with regard to sales of physical music, which increased by 14.8% year-on-year to EUR 213 million (USD 259 million) in the first quarter. Vivendi suggested that this increase was due to “better new releases and catalog sales”.
Streaming made up around 68% of UMG’s music sales in the quarter. This includes physical and digital sales as well as license revenues, but not merch, which UMG counts separately.
UMPG music publishing revenue grew 6.9% organically, while merch sales declined 10% year over year.
(All percentage increases / decreases published here are on an organic basis).
Vivendi does not offer any insight into UMG’s profitability outside of the half-yearly and annual results. As a result, this information was not included in the French company’s first quarter figures.
However, the company has confirmed to investors today: “Vivendi will call on its shareholders at the general meeting on June 22, 2021 to take a position on the plan to make an extraordinary distribution in kind in the form of UMG shares to its shareholders, Completion is expected for autumn 2021.”
It was also confirmed that UMG’s bestselling music recording in the first quarter of 2021 included new releases from Japanese act King & Prince and US star Justin Bieber, as well as further sales from The Weeknd, Ariana Grande and Pop Smoke.
The Universal Music Group generated 8.4 billion US dollars in the 2020 calendar year, an organic increase of 4.7% on the previous year.
* All currency conversions from EUR to USD in this story were made at the rate specified by Vivendi.Music business worldwide