Vivendi to present ‘hypotheses’ on Universal Music Group IPO this month

Universal Music Group parent Vivendi is exploring ‘different hypotheses’ relating to how a potential IPO of the major record label could work.

Findings will be presented by the Vivendi management board at its next supervisory board meeting on May 17th.

CEO Arnaud De Puyfontaine confirmed that the company was considering a ‘spin out’ of Universal Music Group as its own entity on the stock market in April.

Speaking to shareholders in Paris, according to the FT, De Puyfontaine said: “We have started work that will allow us to present the benefits of a potential listing of UMG to the supervisory board.”

Universal Music Group posted record annual sales in 2017 – topping $6bn across publishing and records for the first time in history – while annual EBITA profits leapt up 20.6% at constant currency to €761m ($860m).

Meanwhile, the major’s recorded music streaming revenues more than doubled in the two years from 2015 to 2017 (€954m to €1.97bn).

UMG made up 46% of Vivendi’s overall revenue in 2017 – comfortably ahead of Canal+ on 42%. 

Music Business Worldwide

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