DGMI and Universal report fourth quarter of 2006 resultsMarch 9, 2007
Digital Media Group Inc. and Universal Music Group have both reported their fourth quarter of 2006 revenues.
DMGI) reported revenue of $5.56 million, a 700 percent increase from fiscal 2005 revenue of $679,975. The company shrunk its net loss to 32 cents per share, or $2.62 million, from 69 cents per share, or $1.56 million in 2005.
With an average of 137.000 tracks available for sale in 2006, the company’s total paid downloads increased 21/2 times to 14 million from 5.3 million in 2005. Digital Music had 219,800 tracks for sale as of Dec. 31, 2006.
For the fourth quarter of 2006, the company reported revenue of $2.7 million, compared to $454,440 in the previous year. The company’s net loss was 9 cents per share, or $770,329, compared to a net loss of 16 cents per share, or $363,128 in the fourth quarter of 2005.
On the other hand, earnings bumped for Universal Music Group during 2006, according to figures produced Wednesday by parent Vivendi. EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) figures for the recent year moved to €744 million ($978.3 million), up 9.3 percent from 2005 totals. Measured on a constant currency basis, that increase is actually 10.2 percent, according to the group.
Vivendi pointed to improved margins on higher sales and legal settlement gains as contributors to the increase, despite rising marketing and artist & repertoire costs. Meanwhile, revenues topped €4.96 billion ($6.53 billion) for the year, a mild increase of 1.3 percent, or 1.5 percent on constant currencies. Top sellers for the period included U2, Andrea Bocelli, Snow Patrol, Nelly Furtado, The Killers and The Pussycat Dolls.
For the recent fourth quarter, the picture was somewhat different. During the period, EBITDA figures reached €311 million ($409.6 million), a drop of 1.5 percent, and a gain of 1.7 percent at constant currencies. Meanwhile, revenues moved to €1.66 billion ($2.19 billion), a drop of 1.6 percent, or a gain of 1.2 percent at constant currencies.