Vivendi announced that its half-year revenues rose by 13.6% YoY to 7,353 million euros, boosted by the growth of Universal Music Group’s business.
For Vivendi, the EBITA ((Earnings before interest, tax, depreciation and amortization) stood at 718 million euros, registering a growth of 32.4% YoY. EBIT (Earnings Before Interest and Taxes) was recorded as 645 million euros, a rise of 31.2% YoY.
Universal Music Group, a Vivendi subsidiary, grew its revenue 18.6% on a constant currency basis (or 24% an actual basis), with streaming revenue growing an even more robust 25.5%.
UMG’s recorded music revenues grew by 16.9% at constant currency and perimeter thanks to the growth in subscription and streaming revenues (+25.5%) and strong physical sales in the first half of 2019 (+15.0%).
Vivendi plans to sell up to half its stake in Universal Music Group. PricewaterhouseCooper’s due diligence was completed in May and advisory banks have been selected to advise on the deal.
The most recent valuable of UMG is more than $30 billion. Analysts believe music streaming will continue to drive its global growth and ability to grow hit-making music.