PARIS, France (CelebrityAccess) — French media conglomerate Vivendi posted solid financial results for their first fiscal quarter, buoyed in part by Universal Music Group.
According to Vivendi, revenue at UMG rose 22.9%% from Q1 2018 to 1.5 billion euros, as the company said it plans to forge ahead with a planned sale of as much as a 50% stake in the label giant.
Recorded music revenues grew by 19.2% bolstered by higher subscription and streaming revenues, which were up by 28.1% for the quarter, and surprisingly, by strong physical sales in the first quarter of 2019, which were up by %20.8. The improvement more than offset the continued decline of digital music sales, primarily downloads, which slid by 18.2% for Q1.
Revenue from merch was also a bright spot for UMG, and up by 72.7% from the same quarter in 2018, with help from increased touring activity and D2C (Direct to Consumer) revenues.
UMG’s financial results for the quarter were driven by new releases from Ariana Grande, the Japanese band back number and Billie Eilish, as well as continued sales of the soundtrack from A Star Is Born and multiple albums from Queen.
As well, UMG songs held the top spot on Spotify U.S. and Global Weekly Charts for every week of the first quarter of 2019 and the No.1 song on the Billboard Hot 100 for 12 out of 13 weeks of the first quarter of 2019.
All reported figures are at constant currency and perimeter, which is intended to eliminate fluctuations in currency exchange rates.