Universal Music Group saw a major jump in revenue during the second quarter of 2017, driven by streaming and digital subscriptions. UMG revenue grew by 15.6 percent to $1.5 billion in the quarter. Operating income reached $183 million, an impressive 48 percent jump. The label’s fiscal results were reported as part of parent company Vivendi‘s Q2 financial report.
Streaming and subscription revenue made up 45 percent of Universal’s revenue in Q2, offsetting a 16 percent drop in digital downloads and a 23 percent fall in physical sales.
Universal Music Publishing also got a boost from streaming during the quarter, with an 11 percent increase to $431 million in revenue.
In the first half of 2017, UMG saw its revenue grow by approximately 15 percent to $2.98 billion, with operating income at $335.3 million
Some of the best selling releases in the first six months of the year came from Drake, The Weeknd, Kendrick Lamar and the soundtracks to Moana and La La Land, as well as the 50th Anniversary edition of Sgt. Pepper’s Lonely Hearts Club Band by The Beatles. Luis Fonsi’s smash hit “Despacito,” featuring Daddy Yankee and Justin Bieber, also helped to drive digital and streaming revenue.
In total, Vivendi saw its revenue grow by 7.8 percent in the first six months of 2017, which was in part attributed to the success of UMG.
