VU reported a net income of €131 million ($156.9 million) for Q3, compared with a loss of €1.23 billion in the year-earlier quarter. Revenue dropped 59% to €5.9 billion from €14.55 billion compared with a year ago, because Vivendi has started selling off a lot of its properties.
In the news that means something to you, Universal Music Group posted a sharp decline in both operating profits and revenues. The division reported a profit in Q3 of €4 million, compared to a profit of €16 million last year. This was attributed to an impact on margins because of lower sales and a higher proportion of distributed labels and joint activity, though there were lower costs in marketing and overhead. Revenue for the music group was reported at €1,115 million.
For the first nine months of the year, UMG reported operating losses of €38 million, based on revenue decline, restructuring costs, and one-time income from asset sales in 2002, offset by reductions in marketing and catalogue amortization expenses.
The official rundown included that UMG is in the process of cost-cutting initiatives that include reducing prices, noting that the pricing changes is “necessary for the long term health of the industry,” though it may have a negative impact on the near-term results. Those same cost-cutting measures “take into account the realities of the declining music market.”
Ah, good times.
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