A number of key global successes at Universal Music have helped their parent company, France's Vivendi Universal, to put past financial problems behind them. With the worldwide success of artists like 50 Cent and Mariah Carey, Universal Music achieved earnings of 36 million euros last year, up from a 4 million euro loss the previous year. The major label enjoys a 25% share of the worldwide music market, and with 4% of revenues coming from digital downloads insiders are increasingly confident the company can continue to perform well in the digital age.
Universal Music's success has helped Vivendi Universal turn around its fortunes. Net income for quarter one of this financial year is 502 million euros, up from 166 million in the same period last year. That's a considerable success for a company that was spiralling into financial oblivion three years ago after a $77 billion acquisition binge backfired. The contribution Universal Music has made to that success justifies current chairman Jean-Rene Fourtou's decision to not sell off the group's music assets when they offloaded the Universal film and TV companies in a bid to raise quick cash.