Despite gains from digital sales and higher license income in the United States, Universal Music Group saw revenues in the third quarter decline to €1.096 billion ($1.4 billion), down 2.1% from

Despite gains from digital sales and higher license income in the United States, Universal Music Group saw revenues in the third quarter decline to €1.096 billion ($1.4 billion), down 2.1% from the same period last year.

The figure included a €36 million ($46 million) sum the company received from Bertelsmann following the September settlement of the Napster litigation. UMG cited unfavorable exchange rates for the dip.

UMG's digital sales during the period rose to 126 million, up 88% from the corresponding period last time, parent company Vivendi reported today (Nov. 7). Sales of digital music now accounts for 11.5% of total UMG revenue, with "strong growth" reported across both online and mobile fields.

Best-sellers during the three-month period included new releases from the Killers, Fergie, Scissor Sisters and Ludacris.

Over the first nine-months, UMG recorded a 2.7% rise in revenue to €3.298 billion ($4.22 billion), a result driven largely by digital, higher U.S. license income, greater music publishing sales and favorable currency movements.

VU today unveiled a 0.8% improvement in third quarter revenue to €4.889 billion ($6.2 billion). For the first nine months, VU generated sales of €14.462 billion ($18.52 billion), up 4.1% from the corresponding period in 2005.