191
Annual Report -
2013
-
Vivendi
Financial Report
| Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
4
SECTION 4 - Business segment performance analysis
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Revenues and EBITA
Universal Music Group (UMG) revenues were €4,886 million, up 12.8%
at constant currency compared to 2012 (+7.5% at actual currency). At
constant currency, excluding EMI recorded music, revenues were in line
with the prior year, as the decline in physical sales was offset by the
growth in digital and other revenues, with subscription and streaming
revenue increasing by approximately 75% over the prior year. For the
first time in 2013, yearly digital sales exceeded physical sales.
Recorded music best sellers for 2013 included Eminem, Katy Perry,
Imagine Dragons, Lady Gaga, Drake, Robin Thicke as well as French-
language artist, Stromae. The Company’s commercial and creative
success set many records over the course of the year, including UMG
becoming the first company to achieve all ten of the Top 10 songs on the
US charts and nine of the Top 10 albums in the US. In addition, UMG
signed new agreements with leading labels including Disney Music
Group, Glassnote Entertainment and Roc Nation, as well legendary
artists including Neil Diamond, Queen, The Rolling Stones and Frank
Sinatra.
UMG’s EBITA of €511 million was up 1.4% at constant currency
(-2.9% at actual currency) compared to 2012. Excluding restructuring
and integration costs, and at constant currency, EBITA was up 9.5%
compared to 2012, due to revenue growth and cost management efforts.
UMG achieved this performance despite a very difficult industry
environment in Japan, the world’s second largest music market.
The Company’s integration of EMI remains on track to deliver the
previously disclosed synergies of more than £100 million by the end
of 2014.
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Cash flow from operations (CFFO)
UMG’s cash flow from operations amounted to €585 million (compared
to €472 million in 2012), a €113 million increase compared to 2012. This
included UMG’s operating performances (EBITDA after changes in net
working capital increased by €117 million), the exceptional dividends
received by UMG from Beats (€54 million) and property disposals
(€27 million).
