Page 187 - 2012 Annual Report

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VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
I - 2012 FINANCIAL REPORT
SECTION 4 BUSINESS SEGMENT PERFORMANCE ANALYSIS
REVENUES AND EBITA
Universal Music Group’s (UMG) revenues were €4,544 million, an 8.3%
increase compared to 2011. At constant perimeter (excluding revenues
from EMI Recorded Music, acquired at the end of September 2012),
revenues were up 1.6% thanks to growth in recorded music sales in North
America and favorable currency movements. At constant currency and at
constant perimeter, revenues were down 3.3% with a 10.0% increase in
digital sales and higher license income offset by the decline in physical
sales. Digital sales represented 44% of recorded music sales compared
to 38% in the prior year.
Recorded music best sellers notably included new releases from Taylor
Swift, Justin Bieber, Maroon 5, Rihanna, Nicki Minaj, Lana Del Rey, Gotye,
Carly Rae Jepsen, Cecilia Bartoli, Daniel Barenboim, Rolando Villazón, and
Mylène Farmer.
UMG’s EBITA of €525 million was up 3.6% compared to 2011. Excluding
EMI Recorded Music and at constant currency, EBITA was up 1.6%,
strengthened by cost reduction policy.
CASH FLOW FROM OPERATIONS (CFFO)
UMG’s cash flow from operations amounted to €472 million, a €29 million
increase compared to 2011. This includes the impact of the integration of
EMI Recorded Music since September 28, 2012 (-€18 million, including
restructuring and integration costs paid for €37 million), which was more
than offset by UMG’s operating performances (EBITDA after changes in
net working capital increased by €69 million), the proceeds from the sale
of certain content assets from UMG’s catalog (€25 million), and a decrease
in restructuring charges paid by UMG (-€14 million).