UMG Reports 9.3% ’06 Earnings Jump

It’s a gloomy time at most record labels. But somehow that’s not the case at The Universal Music Group who today announced a 2006 earnings jump of 9.3% today as part of a very positive report
to the markets from it’s parent Vivendi corporation.

UMG’s earnings before interest and taxes was €744 million (US
$976.5 million), 9.3% higher than last year or up 10.2% on a constant currency basis. Improved margins on higher sales, legal settlements and the recovery of a previously expensed cash deposit involving a lawsuit with indie TVT offset increased expenses for marketing and A&R costs for local artists. Bestsellers for the year include new releases from U2, Andrea Bocelli, Snow Patrol, Nelly Furtado and The Killers in addition to strong carryover sales from The Pussycat Dolls.

Parent Vivendi’s overall adjusted net income in 2006 rose 18% to €2.6 Billion (US $3.4 Billion).