The Universal Music Group has reported encouraging financials for the first quarter. The major record company's global revenues were 1.038 billion euros ($1.338 billion), representing a 14% jump on the comparable 2004 period. That growth came despite a continued perception of there being a downward trend in the music sector. Certainly Universal seem to have increased their market share, thanks to strong releases from the likes of 50
Cent, Jack Johnson, 3 Doors Down, Mariah Carey and The Game.
The group also benefited from a marked increase in income from the digital music space. Download sales now account for 4% of the group's revenues, and the major has a 25% share of the digital music market place. Jean-Bernard Levy, chairman of Universal's parent company Vivendi, told investors he saw the digital domain as an ongoing area of growth for the major, with digital sales likely to account for 20% of total revenues in a few years time.
Perhaps unsurprisingly given the financial successes, Levy also reportedly reaffirmed his commitment to keep the Universal Music Group within his company. Vivendi had to sell of its other Universal entertainment businesses, of course, in a bid to recover from its acute financial hardships a few years back.