The Universal Music Group has made a significant contribution towards the recovery of Vivendi Universal, the French entertainment conglomerate that almost collapsed in 2002. Confirming group-wide earnings of E2.08 billion and plans to pay out a E1 dividend to share holders, Vivendi revealed that the group's music company played a key role in their financial recovery.
Universal Music's profits were up 18.8% in 2005 to E480 million ($570 million), with revenues up 1.5% to E4.89 billion ($5.8 billion) - figures which, the group says, demonstrates the music company maximised its profits through both higher sales and continued cost savings.
In a statement Vivendi said of its music company: "UMG artists dominated the best seller lists in its major markets, topping all of the major music genres allowing UMG to gain market share, and lead the competition by earning an unprecedented 40 Grammy awards."
On the general financial recovery of the group, chairman Jean-Bernard Levy said: "Our strategy is paying off. We will continue to invest in creation, content, and in future technologies while fostering loyalty in our subscribers. Vivendi Universal will create value first and foremost by promoting innovation, creativity and operational synergies and by making the appropriate investments at the right time."