UMG: Firm will reach higher note this year

Co. reported revs down 21%, upbeat over album slate

NEW YORK — Universal Music Group chief Doug Morris is predicting the company could boost its market share by 4% this year.

Morris and several UMG execs spoke to analysts in London on the first leg of a three-city briefing tour intended to bolster confidence in UMG’s long-term prospects.

Company said it believes its current album slate is strong enough to help the world’s largest record group outperform the still-contracting recorded music market.

Vivendi, which is due to report first-quarter revenues early next month, indicated that music sales in the U.K. were flat for the quarter, while Germany, France and Japan continued to see declines.

Market-share gains are still the major barometer of success in an industry where total sales dropped 7.6% last year amid erosion from piracy and more competition from alternative entertainment outlets.

Company holds the market-share lead in the U.S. with 28.1% of record sales.

UMG reported revenues down 21% last year to $6.08 billion due to adverse currency exchange rates, fewer top releases and the general slowdown in global record sales. Restructuring costs at the division also hurt the bottom line, as operating income fell 87% to $85.6 million. But the cost-cutting regimen is expected to pay off when company reports first-quarter financials May 5.

UMG will be one of two main media assets (along with pay web Canal Plus) that parent company Vivendi will control once it sells Viv U Entertainment to NBC next month.

(Bloomberg News contributed to this report.)

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Music News from Variety