UMG Mid-Year Figures Reveal Streams Finally Offset Sales Declines

Yesterday (Sept. 2), Universal Music Group‘s (UMG) parent company, France-based Vivendi, reported increased financials for the music division’s first half of 2015.

Highlights include UMG revenue up 3.4 percent (accounting for exchange rates and internal restatements, +15.4 percent on an actual basis), compared to the first half of 2014. Recorded music revenues reportedly grew by 3.6 percent. Growth in subscription and streaming revenues (+34 percent) have finally offset the decline in both digital download (-5 percent) and physical sales. Apple Music numbers were not reflected.

Music publishing revenues grew 2.7 percent (accounting for exchange rates and internal restatements), also driven by increasing subscription and streaming revenues.

Just for its second quarter, UMG had $1.35 billion in revenue and $139 million in earnings. For its six month mark, UMG totaled $2.57 billion in revenue, $255 million in earnings.

Artists cited to fuel the recorded music boon were Taylor Swift (for whom UMG distributes BMLG), Sam Smith, the Fifty Shades of Grey soundtrack and new releases from Drake, Maroon 5 and Mumford & Sons. Merchandising and other revenues were up 3.2 percent (accounting for exchange rates) due to to greater touring activity.

This news comes after beginning the 2015 calendar with a restructuring that also now finds Chairman/CEO Lucian Grainge leading the music division through at least 2020, in addition to Nashville-based Jay Frank leading global streaming for the company.