Billboard Reports:
By Glenn Peoples, L.A.
Universal Music Group’s (UMG) Q4 2009 revenue dropped 8.2%, compared to the previous year, according to parent company, Vivendi, which announced Q4 and full year results on Monday.
UMG’s earnings before interest, depreciation and amortization (EBITDA) improved 11.9% from 2008 (18.7% at constant currency) and were slightly larger than EBITDA in Q4 2007.
For the entire year, UMG’s revenues fell 6.2%. Digital sales grew 8.4%, while music publishing increased 1.7% and merchandising, albeit a small figure relative to the revenue of other segments, grew 24.6%. In spite of the improvement in Q4, full-year EBITDA dropped 15.5% (14.7% at constant currency).
Digital growth was 8.4% lower than the global 2009 total of 12% (according to the IFPI) and four points lower than the 12% growth Warner Music Group recorded in its latest fiscal year (ending September 30, 2009).
UMG’s improvement in Q4 EBITDA indicates the company was able to reduce costs without harming performance in the busiest quarter of the year. The drop in full-year EBITDA is not a surprise, however, as it was a challenging year in terms of both the economy and the industry’s continued transition. WMG also performed relatively well, yet its EBITDA in calendar year 2009 was 20% lower than the previous calendar year.
