UMG Q3 profits slump by 89% thanks to poor world markets. (News).

There was no indication last week that the global slowdown in the music market is about to turn around after the largest record company, Universal Music Group, unveiled third-quarter operating profits down by a massive 89%.

The results, which also reported revenues down 9% (or 2% on a constant currency basis), came on the back of EMI's 10% fall in turnover and UMG's 4% decline in sales for the first six months of the year, which demonstrates that lower sales and margins are continuing to bite.

For the three months to the end of September, the music operation contributed 1.33bn [euro] compared with 1.46bn [euro] in the same period last year. The operating income for the period was down to just 16m [euro] from 140m [euro] in 2001. For the nine-month period revenues were down 5% to 4.2bn [euro] while operating income slid 51% to 185m [euro].

Chairman and CEO Jean-Rene Fourtou, who undertook a major asset disposal programme almost as soon as he took office in September, says he has made "very good progress" and expects to have sold assets worth around 7bn [euro] by the end of this year. The company has recently been examining whether to ...