Universal Music UK has reported 2017 revenues of £344.33 million, a year-on-year increase of 8.8%.
The UK division of the major had a similar year-on-year increase to the international company. Universal Music Group increased revenues by 10% over the the same period and the streaming boom has led to parent company Vivendi pursuing a potential IPO for UMG.
“This growth was driven by increased demand for streaming services, as well as the timing of new releases,” said the UK company’s strategic report. Universal Music UK added that the outlook was “positive” as a result of continued growth in streaming.
Revenue was split between £188.8m for product sales and £155.5m for royalties. Domestic revenue edged up from £238.99m to £242.1m, though there was a greater increase from international territories. European revenue was up 31.8% to £39.36m, US revenue was up 29.7% to £40.7m and the total for the rest of the world was up 36.7% to £22.1m.
David Joseph, Universal Music UK and Ireland chairman/CEO, has recently overseen a new strategy and promotions for the company’s international division.
Universal Music UK made a loss of £16.1m last year, compared to £13.7m in 2016, but its operating profit rose sharply from £964,000 in 2016 to £10.6m 2017. The gross profit margin increased from 30.1% to 31%, as a result of cost controls and the company’s product mix.
The financial statement for 2017 revealed that Universal paid out a total of £15.7m for controlling stakes in companies including dance label All Around The World, Strange Music (now RG2016), Stiff Records and ZTT. The company owns a 50% share in Def American Ltd, Rick Rubin’s label known as American Recordings.
Universal Music UK also reported commitments for artist advances of £34.86m in 2017, of which £9.43m relates to the following financial year.
The statement also confirmed that Universal has taken a 15-year lease on a new HQ in London’s King’s Cross.
Universal recently revealed details of its gender pay gap across the UK company.