NEW YORK (CelebrityAccess MediaWire) — Universal Music Group has releaed their Q3 results, posting a loss behind what Philippe Capron, CFO of Activision characertized as a "signficant decrease in revenues."
Universal Music Group’s revenues declined 5.2% compared to the first nine months of 2008. A 21% growth in digital sales, higher merchandising and music publishing activity were offset by falling demand for physical media and lower license income in addition to a light release schedule. At constant currency, revenues declined by 8.4%.
Universal Music Group’s EBITA of €269 million declined 34.1% compared to the same period last year with lower recorded music sales and an unfavorable sales mix. A decline in licensing income including copyright settlements, offset growth in music publishing and contributions from new business initiatives, such as merchandising, in addition to cost savings. Earnings were also hurt by a one-time €49 million charge related to UMG's ongoing reorganization efforts. – CelebrityAccess Staff Writers
