nypost.com/2014/02/26/universal-music-group-hit-hard-by-lady-gagas-album-flop/
Lady Gaga’s “ARTPop” album last fall certainly didn’t give Universal Music Group any pop.
Gaga’s fourth-quarter flop helped cut Universal’s revenue in the period 9.3 percent, the company said in a report Tuesday.
The tough Japanese economy — which accounts for 25 percent of global music sales — also hurt.
Earnings before interest, tax and amortization, or Ebita, was off 11.1 percent, or 7.8 percent on a constant-currency basis.
The tough quarter cut profits for the year by 2.9 percent, to $702 million (511 million euros).
They were up 1.4 percent on a constant-currency basis, the company said.
Full-year revenue rose 7.5 percent to $6.7 billion (4,886 million euros) or 12.8 percent when adjusted for currencies.
For the year, Universal Music’s best-selling albums were from EMI’s Katy Perry and Interscope’s Eminem.
UMG reported a 75 percent jump in subscription and streaming revenue, though it didn’t break out a number.
The music company, long the focus of sale speculation amid chaotic changes at its France-based owner, Vivendi, seems to be staying put for now.
Vivendi is planning to separate the music group and its France-based pay-TV operation, Canal Plus, into a new division while it sorts out its telecom assets.
Claudio Aspesi, a senior analyst at Bernstein Research, told investors Feb. 25 that “Vivendi seems open to potential future acquisitions in media,” but to acquire a new leg to the company could be a mistake.
“The key,” Aspesi continued, “is for the UMG-EMI company to avoid the most worrying strategic pitfall of acquiring a new leg altogether with limited or no synergies with the existing portfolio of TV and music assets.”
Lady Gaga’s “ARTPop” album last fall certainly didn’t give Universal Music Group any pop.
Gaga’s fourth-quarter flop helped cut Universal’s revenue in the period 9.3 percent, the company said in a report Tuesday.
The tough Japanese economy — which accounts for 25 percent of global music sales — also hurt.
Earnings before interest, tax and amortization, or Ebita, was off 11.1 percent, or 7.8 percent on a constant-currency basis.
The tough quarter cut profits for the year by 2.9 percent, to $702 million (511 million euros).
They were up 1.4 percent on a constant-currency basis, the company said.
Full-year revenue rose 7.5 percent to $6.7 billion (4,886 million euros) or 12.8 percent when adjusted for currencies.
For the year, Universal Music’s best-selling albums were from EMI’s Katy Perry and Interscope’s Eminem.
UMG reported a 75 percent jump in subscription and streaming revenue, though it didn’t break out a number.
The music company, long the focus of sale speculation amid chaotic changes at its France-based owner, Vivendi, seems to be staying put for now.
Vivendi is planning to separate the music group and its France-based pay-TV operation, Canal Plus, into a new division while it sorts out its telecom assets.
Claudio Aspesi, a senior analyst at Bernstein Research, told investors Feb. 25 that “Vivendi seems open to potential future acquisitions in media,” but to acquire a new leg to the company could be a mistake.
“The key,” Aspesi continued, “is for the UMG-EMI company to avoid the most worrying strategic pitfall of acquiring a new leg altogether with limited or no synergies with the existing portfolio of TV and music assets.”
