Universal digital sales rise 8.4% in 2009

12:01 | Monday March 1, 2010

Overall revenues at UMG were down 6.2% from 2008 to €4.36bn (£3.9bn). Digital, however, grew 8.4% despite the company reporting a “softening demand for mobile products in the United States and Japan”.

Last week, RIAJ reported that digital unit sales last year in Japan dropped 2% to 468m units, while revenue sat flat at ¥91bn (£668m). The digital sector taking the biggest hit last year in Japan was ringtones, dropping 19% in value to ¥16.4bn (£123.7m).

Vivendi cited the success of services such as Spotify and MusicStation, as well as its own interest in premium video channel Vevo, as helping grow digital music revenues in 2009.

Music publishing revenues at UMG increased 1.7% and merchandising grew 24.6% but it was not enough to offset the decline in the physical recorded music business. UMG's EBITA was down 14.7% year-on-year at constant currency to €580m (£523m). Vivendi says lower gross margins from declining sales were partially offset by cost management initiatives, primarily reductions in marketing and overhead expenses.