Quantcast
"Operating results for the first half of 2004 show strong progress, reflecting our focus on the management of our activities. Today’s results confirm that Canal+ Group and Universal Music Group’s turnarounds are on the right track."
——Jean-Rene Fourtou, Vivendi Universal Chairman/CEO

UMG PROFITS VIVENDI IN SECOND
QUARTER AND FIRST HALF

Despite Widened Vivendi Loss, Music and TV Continue to be Bright Spots

Although Vivendi Universal posted a greatly increased loss for both the second quarter and first half ended June 30, the good news is that its Universal Music Group swung to a profit for both periods.

UMG posted second-quarter operating profit of €31 million ($38.1 million), up from a loss of €14 million during the same period last year. For the half, operating profit was €15 million, compared to a loss €42 million in 2003.

UMG attributed the turnaround to lower A&R and marketing costs, overhead and "selling expense" reductions and a lower depreciation charge (some sort of accounting stuff we don't really understand).

Speaking of which, the above positive factors helped UMG to a profit in spite of a "reduction in the period that music and music publishing catalogs are amortized from 20 to 15 years," resulting in higher amortization expenses. Also, €34 million in restructuring expenses and an €18 million impairment charge at UMG’s Music Clubs weighed on profits—but didn't sink them.

Major new releases coming from UMG in Q4 include albums from Andrea Bocelli, Mariah Carey, Eminem, Nelly, Gwen Stefani and U2, as well as greatest hits packages from Jay Z, George Strait and Shania Twain.

Remarking on the improved results from UMG and VU's TV operations, Chairman/CEO Jean-Rene Fourtou: "Operating results for the first half of 2004 show strong progress, reflecting our focus on the management of our activities. Today’s results confirm that Canal+ Group and Universal Music Group’s turnarounds are on the right track."

For the company as a whole, VU reported a Q2 loss of €1.85 billion, increased form a loss of €313 million a year earlier, and a loss of €1.858 billion for the half versus a loss of €632 million for the same period in 2003.

VU says the widened losses are mainly due to a one-time €2.1 billion foreign-exchange loss resulting from the sale of Vivendi Universal Entertainment to General Electric's NBC.

NEAR TRUTHS: SPRING BLOOMS
Here come the big guns. (3/28a)
THE COUNT: COLDPLAY IS HOT, COUNTRY'S COOKIN' IN THE U.K.
The latest tidbits from the bustling live sector (3/28a)
CITY OF HOPE TAPS MARCIANO FOR TOP HONOR
This year's philanthropic model (3/28a)
TRUST IN THE TOP 20
Hip-hop is no longer hibernating. (3/28a)
UMG BROADENS SPOTIFY OFFERINGS
Sir Lucian and Daniel are in harmony. (3/28a)
THE NEW UMG
Gosh, we hope there are more press releases.
TIKTOK BANNED!
Unless the Senate manages to make this whole thing go away, that is.
THE NEW HUGE COUNTRY ACT
No, not that one.
TRUMP'S CAMPAIGN PLAYLIST
Now 100% unlicensed!
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)