Vivendi SA, the French media and communications conglomerate whose holdings include the Universal Music Group, today reported its first quarter revenues remained stable while its net income dropped by 18.5 percent to 672 million euros from 825 million euros a year earlier. Much of the company's quarterly losses were attributed to the highly competitive mobile market as its SFR French mobile division faced price-cutting wars.

Universal Music Group Earnings Up; Vivendi's Adjusted Profit Shrinks

Universal Music Group, however, outpaced its parent company as its revenues came in at €1,091 million up 13.5% compared to first quarter 2012  (+15.5% at constant currency). Revenues were bolstered by better-than-expected results from EMI labels, partially offset by lower revenues in Japan as well as the disposal of the company's VE/Fontana activities in 2012.

The music industry’s largest label also reported in its earnings that its income from digital sales continued to rise representing 54% of recorded music sales compared to 46% in first quarter 2012.

The label’s biggest sellers this quarter were led by the soundtrack from ”Les Misérables,” new releases from Rihanna, Bon Jovi, Justin Bieber, Lil Wayne, Emeli Sandé, Andrea Bocelli and a  compilation of songs by 2013 Grammy Award-winning artists.