Universal suffers revenue slide

Universal Music Group saw sales drop 5.4 per cent – or 7.9 per cent with currency effects stripped out – in the first six months of 2010, according to interim results from its French parent Vivendi.

But the woes at Universal did not hold profits back at Vivendi, which raised its full-year guidance after seeing a 4 per cent hike in net profit to 1.53 billion euros (1.26bn) during the first half.

Vivendi's empire also includes French pay TV channel Canal+ and a majority stake in French telecom operator SFR.

It said Universal Music revenues were hit by fewer major local and international releases and the ongoing decline in demand for CDs as digital sales and downloading take over.

Alongside Lady Gaga, artists signed to Universal include the Black Eyed Peas, Eminem and teen pop sensation Justin Bieber.

Its pipeline of releases for the second half of 2010 include albums by Welsh singer Duffy, Mariah Carey, Kanye West and the Black Eyed Peas.

Vivendi posted overall revenues of 13.98 billion euros (11.6bn) for the six months to June 30, up 6.1 per cent on a year earlier.

The weaker performance in Universal Music was offset by a surge in sales at divisions such as recently acquired Brazilian fixed-line telecom operator GVT, which posted a 39 per cent revenue rise.

SFR sales increased by 1.8 per cent and Canal+ saw revenues lift 3.1 per cent.