Vivendi 1Q Revenue Increased, Supported by Universal Music -- Update
--Vivendi's 1Q revenue increased as Universal Music and Editis
supported overall growth
--The company expects to complete Universal Music distribution
plan in fall 2021
--It says it is difficult at this time to determine how the
pandemic will affect 2021 results
By Mauro Orru
Vivendi SE said Thursday that revenue for the first quarter
increased as its main business Universal Music Group recorded
strong growth in subscription and streaming, while the Editis
business also posted a marked improvement in revenue.
The French media giant steered by billionaire Vincent Bollore
said revenue for the quarter rose to 3.90 billion euros ($4.69
billion) from EUR3.87 billion in the first quarter of 2020.
The result represents an increase of 5% on an organic basis.
Revenue at Universal Music climbed to EUR1.81 billion from
EUR1.77 billion, up 9.4% organically.
The record label that works with Lady Gaga and Taylor Swift
posted organic growth of 19.6% in subscription and streaming
revenues, while physical sales rose 14.8%.
New releases from King & Prince and Justin Bieber and
continued sales from the Weeknd, Ariana Grande and Pop Smoke were
among recorded music best-sellers for the quarter, the company
Vivendi has an 80% stake in Universal Music and is planning to
hand 60% to shareholders in a special distribution at a minimum
target of EUR30 billion for the company's enterprise value.
The company said it would ask shareholders in June to express
their views on the distribution plan, which it expects to complete
in fall 2021.
The spinoff would come at a fitting time for the record label,
as streaming services have benefited from consumers spending more
time listening to music amid the coronavirus pandemic.
Vivendi's Editis business posted revenue of EUR163 million
compared with EUR116 million the previous year, marking a 40.1%
The company said general literature and diffusion and
distribution sales had an "outstanding" performance, with several
titles topping bestseller charts and nine titles in the GFK Top 20
for large-format literature.
"Vivendi continually monitors the current and potential
consequences of the crisis. It is difficult at this time to
determine how it will impact Vivendi's results in 2021. Businesses
related to live performance have a risk of being more impacted than
others. Nevertheless, the group remains confident in the resilience
of its main businesses," the company said.
Write to Mauro Orru at email@example.com; @MauroOrru94
(END) Dow Jones Newswires
April 22, 2021 13:03 ET (17:03 GMT)
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