UMG PERFORMANCE POWERS VIVENDI'S '16

Universal Music Group has become the crown jewel in Vivendi SA’s media empire, delivering an operating profit of $712m for 2016, an increase of 8.4% over 2015. It is UMG’s best performance since Vivendi bought the company in 2006.

Despite download income dropping $294m, the music distrib’s revenues rose 3.1% (4.4% in constant currency) to $5.83b. Recorded music revenue hit $4.63b for the year, led by sales and streams of 2016 releases from Drake, Rihanna, Ariana Grande and The Rolling Stones, plus carryover consumption of Justin Bieber’s latest.

Streaming revenue ($1.64b) topped physical music sales ($1.36b) for the first time ever. Streaming was up 55% from 215, physical was down 13.1%. Downloads brought in $835m, a dip of 26.1% from 2015.

Music publishing revenues grew 6.7% at constant currency, also driven by increased subscription and streaming revenues, the company reported.

The strong year contrasted with Vivendi’s TV operation, Canal Plus, which posted a 44% decline in profits.