Wednesday, February 26, 2014
ArtFlop Hurts Universal Music Group
According to The NY Post, Gaga’s fourth-quarter flop helped cut Universal’s revenue in the period 9.3 percent, the company said in a report Tuesday.
The tough Japanese economy — which accounts for 25 percent of global music sales — also hurt.
Earnings before interest, tax and amortization, or Ebita, was off 11.1 percent, or 7.8 percent on a constant-currency basis.
The tough quarter cut profits for the year by 2.9 percent, to $702 million (511 million euros).
They were up 1.4 percent on a constant-currency basis, the company said.
Full-year revenue rose 7.5 percent to $6.7 billion (4,886 million euros) or 12.8 percent when adjusted for
For the year, Universal Music’s best-selling albums were from EMI’s Katy Perry and Interscope’s Eminem.
UMG reported a 75 percent jump in subscription and streaming revenue, though it didn’t break out a number.
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Posted 5:45:00 AM