Universal Music Group revenue grew 10% to $8.9b in 2017

Universal Music Group (UMG)’s revenues grew 10% to €5.673 billion (A$8.9 billion at current exchange rate) in 2017.

That equated to an average of $22.11 million per day through the calendar year.

The figures were released by parent company Vivendi whose own growth of 4.9% was eclipsed by the music division.

UMG’s growth comprised of a 11.3% gain in recorded music to $6.4 billion – with streaming accounting for $2.7 billion or $235 million a month or $7.5 million a day.

Sales from physical formats fell 3.3% to €1.16 billion ($1.81 billion), while download revenues sank to €685 million ($1.07 million).

Music publishing revenues showed a 9.6% growth to €854 million ($1.33 billion) boosted by streaming as well as gains in sync and public performance revenues.

However lower touring activity led to a 7.1% decrease in merchandising and other revenues.

It was Vivendi’s best performing division. The company called UMG’s "a very solid performance fuelled by the success of subscription and streaming services as well as a number of successful album releases."

It also noted the label group’s ground breaking agreements with Spotify, YouTube, Facebook and Tencent in China.

Best sellers were new releases from Taylor Swift, Kendrick Lamar and Drake, as well as carry-over sales from The Weeknd, Luis Fonsi & Daddy Yankee’s ‘Despacito’, the 50th Anniversary edition of The Beatles’ Sgt. Pepper’s Lonely Hearts Club Band and as soundtrack releases from Moana and La La Land.

UMG’s income from operations amounted to €798 million ($1.25 billion), up 18.5% at constant currency and perimeter year over year as a result of higher revenues.

The company’s EBITA grew 20.6% year over year to €761 million ($1.19 billion) "as a result of higher revenues and lower restructuring charges."

The report was confident of another strong performance this year.

It stated, "In 2018, UMG should be able to benefit from the growth of the market particularly as a result of the development of subscription and streaming services."