Vivendi released its operating results for the first half of 2008 on Monday. Universal Music Group's EBITDA increased 17.7% to €259 million. Revenue for that period was €2,044 million, a 2.4% decrease.

Such a margin is far ahead of that of Warner Music Group (6% operating margin in its most recent quarter) and Sony BMG (-1% operating margin for its most recent quarter). Terra Firma does not release specifics on EMI's financial performance, but we can assume overhauling a struggling company takes more than a few years.

So why is UMG doing so well relative to the other majors? It has increased its market share, it acquired BMG Publishing and Sanctuary, and it regularly tops the charts in numerous countries. Rather than sit on its catalog, as EMI has hinted it may do, UMG aggressively goes after new acts. And the latter half of the year will see a strong release schedule, according to the release: The Killers, Fall Out Boy, Bon Jovi, Black Eyed Peas, Pussycat Dolls and Ne-Yo, among others.

There are, however, some underlying issues. UMG's revenue has been more or less flat in spite of continued acquisitions. Digital growth is tapering off, as it is at other music groups. Physical formats are under pressure and no new revenue stream -- not mobile, not ad-supported services -- is offering a clear path to revenue growth. Like everybody else, UMG is swimming against a current and trying to keep from going backwards. There is no silver bullet that will recapture lost revenues, but UMG is doing a very good job at muscling out one success at a time.

[music jobs] New York University is seeking a Department Chair for The Clive Davis Department of Recorded Music.