Universal Music Group, the record label behind successful artists such as The Weeknd, Billie Eilish, and Taylor Swift, has announced a rise in revenue for the third quarter. This increase can be attributed to the growth in subscriptions and streaming, as well as physical sales, specifically in the U.S. and Europe.
Overall, Universal Music Group reported a revenue of 2.75 billion euros ($2.91 billion) for the three-month period ending in September, representing a 9.9% increase compared to the previous year at constant currency rates. Subscription revenue witnessed a growth of 13%, reaching EUR1.06 billion, while streaming revenue rose by 5% to EUR357 million.
This development in streaming revenue marks a significant shift from the contraction experienced in the first quarter of the year. However, it also implies that the exceptional growth seen during the peak of the pandemic is now a thing of the past. Streaming services experienced a boom as listeners turned to digital platforms when live concerts were halted due to COVID-19 restrictions.
In terms of physical sales, which include CD and vinyl purchases, revenue soared by 20% to reach EUR294 million. Taylor Swift, SEVENTEEN, Morgan Wallen, Olivia Rodrigo, and King & Prince were among the top-selling artists during this quarter.
Universal Music Group’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), a key profitability metric, saw an increase from EUR553 million to EUR581 million, resulting in an adjusted margin of 21.1%.
