Universal Music Group's Profit Margins Grew in 2020, Despite

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Universal Music Group's Profit Margins Grew in 2020, Despite BILLBOARD COUNTRY UPDATE APRIL 13, 2020 | PAGE 4 OF 19 ON THE CHARTS JIM ASKER [email protected] Bulletin SamHunt’s Southside Rules Top Country YOURAlbu DAILYms; BrettENTERTAINMENT Young ‘Catc NEWSh UPDATE’-es Fifth AirplayMARCH 3, 2021 Page 1 of 31 Leader; Travis Denning Makes History INSIDE Universal Music Group’s Sam Hunt’s second studio full-length, and first in over five years, Southside sales (up 21%) in the tracking week. On Country Airplay, it hops 18-15 (11.9 mil- (MCA Nashville/Universal Music Group Nashville), debuts at No.Profit 1 on Billboard’s lion audienceMargins impressions, up 16%).Grew Top• Country TuneCore Albums Unveils chart dated April 18. In its first week (ending April 9), it earnedRewards 46,000 Program equivalent album units, including 16,000 in album sales, ac- TRY TO ‘CATCH’ UP WITH YOUNG Brett Youngachieves his fifth consecutive cordingas Indie to Nielsen Distributors Music/MRC Data. in 2020, Despiteand total Country Airplay No.Pandemic 1 as “Catch” (Big Machine Label Group) ascends SouthsideFend Off marks Major Hunt’s second No. 1 on the 2-1, increasing 13% to 36.6 million impressions. chartLabels: and fourth Exclusive top 10. It follows freshman LP BY ED CHRISTMAN Young’s first of six chart entries, “Sleep With- Montevallo, which arrived at the summit in No - out You,” reached No. 2 in December 2016. He • David Crosby Sells vember 2014 and reigned for nineEven weeks. in Toa nearly date, year-long economic downturn, the hit 1.487 billionfollowed euros with ($1.68 the multiweek billion), orNo. a 1s20% “In Casemargin. You MontevalloLegendary has earnedCatalog 3.9 million units, with 1.4 Didn’t Know” (two weeks, June 2017), “Like I Loved millionto in Irving album Azoff’s sales. Universal Music Group juggernaut posted a 3.8% In 2019, EBITDAYou” (three, totaled January 1.257 2018), euros “Mercy” billion (two,($1.412 August MontevalloIconic Artists has spent Group 267 weeksincrease on the list, in tying 2020, finishing the year with 7.43 billion billion) for a2018) 17.6% and margin. “Here Tonight” (two, April 2019). Luke Bryan’s Crash My Party as theeuros sixth-longest- ($8.4 billion) in revenue — up 3.8% from 7.16 bil- On the other“Catch” hand, completescashflow his from longest operations journey to No.was 1, • Billboard Charts running titles in the chart’s 56-year history. having taken 46 weeks to reach the apex. It out- to Incorporate lion euros ($8.04 billion) in the prior year. down significantly to 50 million euros ($56.5 million) On the all-genre Billboard 200, Southside ar- paces the 30-week climb of “Here Tonight.” Facebook Music Even more impressive, UMG grew operating mar- from 2019’s total of 704 million euros ($790.6 million) rives at No. 5, awarding Hunt his second top 10 On Hot Country Songs, “Catch” pushes 7-5 for Video Streams HUNT YOUNG after the No. 3-peaking Montevallogin. by more than two percentages as the company — which managementa new high. attributed to the timing of pay- posted 1.38 billion euros ($1.56 billion) — an increase ments for advances and signing some new publishing Hunt• Artists first Canreleased Thank the EPX2C , which debuted and peakedDolly Parton at No. for5 on Top Countryof 17.8% Albums over 2019’s in August operating 2014. Followingincome of 1.17COMBS billion ‘DOES’ deals.IT AGAIN Luke Combs’ “Does to Me” (River House/Columbia MontevalloThis $1.6M, Between Studio’s the Pines: eurosAcoustic ($1.31 Mixtape billion). started As ata percentage its No. 7 high of in revenue, Nashville), that featuringVivendi Eric Church management, ascends 11-8citied on releasesCountry Airplay, from The up 10% to NovemberEnhanced 2015. COVID-19 translates into an operating margin of 18.5%24.7 in 2020, million in audience.Weeknd, The Lil songBaby, is King Combs’ & Prince, eighth straight Juice World, career-opening Pop MontevalloProtections produced five singles, four of which hit the pinnacle of Country top 10, following a record run of seven consecutive out-of-the-gate, properly Airplay: “Leave the Night On,” “Takecompared Your Time,” to 16.3% “House in 2019. Party” and “Make promoted No. 1 singles.Smoke, and BTS, as well as continued sales from Billie You Miss• The Me.” ‘Punk “Break Goes Up in a SmallWhile Town” Vivendi peaked atleadership No. 2. extolled UMG CEO LuChurch- adds hisEilish 15th and Country Post Airplay Malone, top for 10. driving revenue in 2020. HuntPop’ co-pennedSeries Laid all the 12 songscian on Southside Grainge and, including the rest “Body of management for Like a Back exercis- Going forward, the company cited upcoming re- Road,”Groundwork which was released For in 2017.ing rigorousThe smash cost hit ruledcontrol Country in a conference Airplay for callTHAT with TOOK QUITEleases ‘A fromFEW’ TaylorMONTHS Swift, Travis Justin Denning Bieber, shatters Lana the Del record Ray, for threeToday’s weeks and Dialogue the airplay-, streaming-Wall Street and analysts, sales-based they Hot also Country acknowledged Songs the that most weeks Selenait has taken Gomes, to penetrate Juanes, the Booba, Country Eddy Airplay de Pretto, top 10 asSamra “After chartBetween for a then-record Pop, Punk 34 frames. It now ranks second only to Bebe Rexha and a Few” (Mercury Nashville) climbs 12-10 in its 57th week, up 4% to 21.4 mil - some typical marketing costs like touring support, and and the Coming 2 America soundtrack. Floridaand Georgia Hip-Hop Line’s “Meant to Be” (50 weeks atop the latter list in 2017-18). lion in radio reach. “Downtown’s Dead,” which isglamour also on the spending new set, this reached year Nos.didn’t 14 haveand 15 to be expandedThe song surpasses UMG’s two tracks2020 revenuethat took 50by weeksoperation: each to enter the top 10: on Hot Country Songs and Countrydue Airplay,to the pandemic, respectively, which in June curtailed 2018. “Kin live- televisionEaston Corbin ’s “ARecorded Girl Like You,”music which grew reached 5.9% to No. 5.97 10 euros in January billion 2018 be- folks” led Country Airplay on Feb.appearances 29, becoming and Hunt’s eliminated seventh concerts. No. 1. It hit fore peaking at No.($6.74 6 that billion) February, from and 2019’s Aaron 5.63 Watson billion’s “Outta euros Style,” ($6.33 which No.• 3BILLBOARD on Hot Country 200 Songs. Looking at other key profit ratios, UMPG’sachieved earnings its No. billion) 10 high in December 2017. LatestCLICK single HERE “Hard to Forget” jumps 17-9 on Hot Country Songs. It’s his “After” is Denning’s second Country Airplay entry. “David Ashley Parker before interest, taxes, depreciation and amortization (continued) eighth top 10, having corralled 8.2 million U.S. streams (up 96%) and 5,000 in From Powder Springs” traveled to No. 32 in September 2018. ETHAN MICHAEL YOUNG: VIA MARTIN/NHLI GETTY HUNT: IMAGES. IMAGES MILLER/GETTY Page 3 of 31 IN BRIEF Music publishing grew 12.7% to nearly Physical 15.8%. been revealed. 1.19 billion euros ($1.34 billion) from 2019’s Licensing and other 13%. They did at least assure analysts that 1.05 billion euros ($1.18 billion). (However, Braking down recorded music revenue by UMG is a company that “creates value, quar- Vivendi management added during the region: ter after quarter.” They also said they believe conference call that growth was boosted by North America grew 11.5% to 2.9 billion that streaming will continue to drive growth a one-time benefit in the second quarter; euros ($3.3 billion) from 2019’s 2.64 billion for the foreseeable future. otherwise the publishing operation would euros ($2.96 billion). The only thing that might have been new have had 10% growth year-over year.) Europe grew 2.7% to 1.79 billion euros for analysts was the assurance that the Spo- Merchandising dropped 39.6% to 292 ($2.02 billion) from 2019’s 1.174 billion euros tify stock holdings UMG gained in Spotify’s million euros ($330 million) from 2019’s ($1.96 billion). 2018 IPO would be included as a UMG asset 489 million ($549.1 million) euros, a 39.6% Asia grew 3.9% to 801 million euros ($905 when it becomes a publicly traded entity. decline. million) from 2019’s 771 million euros ($866 Vivendi management said that there Breaking down UMG’s 2020 recorded million). would be a Vivendi shareholder meeting on music revenue: Latin America dropped 1.6% to 181 million March 29 to modify the company’s bylaws Digital grew 13.14% to 4.24 billion euros euros ($204.5 million) from 2019’s 184 mil- so that UMG shares can be publicly traded. ($4.8 billion) from 2019’s 3.75 billion euros lion euros ($206.6 million). Subject to a favorable shareholder vote, a ($4.2 billion). The rest of the world dropped 15% to 256 shareholders’ meeting could be called be- Streaming grew 15.3% to 3.83 billion euros million euros ($289.3 million) from 2019’s fore the end of 2021 to vote on this distribu- ($4.3 billion) from 2019’s 3.33 billion euros 301 million euros ($338 million). tion of UMG shares, the company said in its ($3.73 billion). As a percentage of revenue, that breaks presentations. Downloads dropped 3.6% to 413 million out to: 00:00 of 10:03Volume 50% euros ($467 million) from 2019’s 428 million North America 49.3% 00:00 euros ($480 million). Europe 30% 10:03 Physical dropped 6.5% to 945 million Asia 13.4% More Videos euros ($1.07 billion) from 2019’s 1.01 billion Latin America 3% MRC Data Presentation: “Future Nos- euros ($1.14 billion).
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