Universal Music Group posted a seven-fold increase in third-quarter operating income, thanks to improved sales margins and a series of cost-cutting initiatives.
UMG operating income totaled €29 million ($37.8 million) during the three months ended Sept. 30 — up from €4 million ($5.2 million) a year ago. Revenues for the quarter were up 4% at €1.2 billion ($1.6 billion).
For the nine months ended Sept. 30, UMG reports positive operating income of €44 million ($57.4 million), turning around a loss of €38 million ($49.5 million) a year ago. Revenues are down 2% at €3.2 billion ($4.2 billion).
UMG parent company Vivendi Universal reports overall third quarter profits improved 19% to €859 million ($1.1 billion), while revenues were up 6% at €4.7 billion ($6.1 billion).
U.S. shares in Vivendi stock rose 15 cents yesterday (Nov. 17) on the news, closing at $29.29. In mid-day trading today, shares in Vivendi were up another 15 cents at $29.36.