×
You will be redirected back to your article in seconds

Universal Music Group Fuels 11.3% Rise in Vivendi’s 2018 Revenues

Vivendi’s revenues were up 11.3% to €13.93 billion ($15.7 billion) in 2018, powered by Universal Music Group, which delivered such hits as the “A Star Is Born” soundtrack and Drake’s new album.

UMG’s revenues climbed by 10% to €6 billion ($6.8 billion) compared to 2017. On top of the “A Star Is Born” soundtrack, the year’s bestsellers were new releases from Drake, Post Malone, The Beatles and XXXTentacion.

Recorded music revenues grew by 9.8%, bolstered by the growth in subscription and streaming revenues, which were up 37.3%. This rise in streaming revenues more than offset the continued decline in both download (-23.5%) and physical (-16.1%) sales.

Vivendi is moving ahead with its plan to sell 50% of Universal Music Group’s share capital to “one or more strategic partners” and expects to select the financial advisors that will assist Vivendi in the sale “in the coming weeks,” the company said.

Vivendi’s income from operations also increased by 22.7%, driven mainly by Universal Music Group but also by Canal Plus Group (+$88 million), which Vivendi said “continues its recovery in France.”

In the absence of a major blockbuster like “Paddington,” Studiocanal’s revenues were on par with 2017 at €462 million ($521 million). The company was France’s second-largest distributor in 2018 thanks to a flurry of successful French films, notably Gilles Lellouche’s “Sink or Swim,” which was one of the highest-grossing French films of 2018 and received 10 Cesar Award nominations.

Canal Plus Group’s overall subscriber portfolio in France and abroad stood at 16.2 million by year-end, compared to 15.6 million in December 2017. But in France, the pay-TV group lost 300,000 subscribers and currently has 7.8 million subscribers. Vivendi attributed the drop to its struggling and soon-to-be-replaced SVOD service Canalplay. The company didn’t mention the steep competition of Netflix, which now has 5 million subscribers in France, according to recent French reports.

During the shareholders meeting, Vincent Bolloré, who presides over Vivendi’s supervisory board, announced his plan to have his son Cyrille replace him at the helm of the board. The arrival of Cyrille Bolloré on the board will have to be approved by a vote during the next meeting on April 15.

More Biz

  • Doug Davis and Jodie ShihadehVariety Power

    Jodie Shihadeh Named Partner at The Davis Firm

    Jodie Shihadeh has been named Partner at The Davis Firm, PLLC. She joined the firm in 2011 and rose from associate to Managing Attorney and now partner. She graduated from Boston College and received her law degree from Fordham University School of Law in 2011. While still in law school she interned in the Business [...]

  • Peak TV Saturation TV Placeholder

    Nickelodeon Alum Keith Dawkins Sets Kidvid Partnership With Believe Media Group

    Former Nickelodeon executive Keith Dawkins has partnered with Believe Media Group to develop children’s programming. Dawkins will partner with Believe under his newly formed Rock Hill Media Ventures, which aims to advise companies in media, entertainment and sports on working with diverse and emerging talent. Dawkins previously spent 17 years at Viacom, most of which [...]

  • CBS Studios Exterior

    CBS Credit Union Manager Pleads Guilty to $40 Million Fraud

    The manager of a credit union for CBS employees pleaded guilty in Los Angeles federal court on Monday to a $40 million embezzlement scheme. Edward Rostohar, 62, was arrested in March after the scheme began to unravel. According to prosecutors, he admitted to stealing money from the bank for the last 20 years. Rostohar is [...]

  • Norman Reedus as Daryl Dixon - The

    CAA's Packaging Fee Becomes Flashpoint in 'Walking Dead' Litigation

    The issue that is at the heart of the WGA’s present standoff with talent agencies has flared up as a source of tension in the litigation between AMC Networks and Frank Darabont and CAA over profit participation on “The Walking Dead.” The practice of talent agencies receiving packaging fees for helping to assemble the creative [...]

  • Sony Music to Deliver ‘Real Time’

    Sony Music to Deliver ‘Real Time’ Data, Royalty Payments to Artists

    Sony Music today announced two new payment features for its artists — “Real Time Royalties” and “Cash Out” — through its artist portal beginning this fall. 

A memo sent to artists Monday morning and obtained by Variety says  the initiatives will “allow our artists and royalty participants to view and withdraw earnings faster than ever [...]

  • Whitney Houston

    Whitney Houston Estate Plans Hologram Tour, Album, Musical

    In the seven years since Whitney Houston’s death, there has been relatively little of the asset-exploitation that usually follows the passing of a music icon, apart from a smattering of previously unreleased recordings, a pair of harrowing documentaries and a lot of unflattering press. But according to an article in the New York Times, the [...]

  • rocketman-elton-john-costume

    Elton John Biopic 'Rocketman' Taps Lucky Brand Collaboration as Part of Promo Push

    Paramount has set a May 28 release date for its Elton John-inspired clothing collection with retailer Lucky Brand, which celebrates the performer’s iconic style and new biopic, “Rocketman” (see tickets and showtimes here). The limited-edition collaboration arrives in stores three days before the film hits theaters, though it’s available for purchase right now on LuckyBrand.com. [...]

More From Our Brands

Access exclusive content