Aided by recovery $64M connected to lawsuit.
Universal Music Group’s first quarter earnings from operations increased 136% to €90 million ($115.5 million), aided by the margin on higher sales volumes, and the recovery of a €50 million ($64.2 million) cash deposit connected to a UMG lawsuit with TVT Records.
As previously reported, UMG’s revenues increased 8.4% to €1.1 billion ($1.4 billion) driven by strong digital sales, improved business in Japan and growth in publishing. Revenues increased 2.8% on a constant currency basis. Digital sales for the quarter increased 146% to €111 million ($137 million) and represented 10% of UMG’s total revenues.
UMG’s sales results were reported as part of first quarter results released by parent company Vivendi. The numbers mirror preliminary results Vivendi released in April.
Vivendi also announced that it rejected a request from shareholder Sebastian Holdings to break up the company saying the plan is “based on economic and legal hypotheses that are unrealistic.”