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 Universal Music Group Revenue Up 10% for Fourth Quarter, According to Early Report

In an early guidance report issued of its full announcement next month, Universal Music Group parent company Vivendi announced that for the fourth quarter of 2017, UMG will see 10% revenue growth and a nearly 20% bump in EBITA.

The report singled out the company’s new deals with Spotify and YouTube as “enabling improved flexibility and better monetization of artist content while creating new revenue streams for the years to come.” It also pointed to a 2017 agreement with Chinese internet goliath Tencent as offering opportunities for Universal in that country’s market and accelerating the development of a local repertoire. UMG chief Lucian Grainge’s team also announced a major licensing deal with Facebook late in December, the first of the social-media platform’s string of deals over the past month, which also include Sony/ATV and Kobalt publishing companies and the performing-rights organization Global Music Rights.

In August, a potentially over-enthusiastic Goldman Sachs report entitled “Music in the Air” predicted that due to streaming’s rapid growth, worldwide revenues from it streaming will reach a whopping $28 billion by 2030, and that paid streaming users worldwide will reach 847 million by that year. Consequently, the company raised its valuation of UMG to $23.5 billion (from around $20.1 billion), a 16% jump, and Sony Music Entertainment’s up 12% to around $20.1 billion.

Source: http://variety.com/2018/music/news/universal-music-group-revenue-up-10-for-fourth-quarter-according-to-early-guidance-1202662850/

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