By Mauro Orru 
 

Universal Music Group posted higher revenue for the third quarter thanks to subscriptions and streaming as well as physical sales, particularly in the U.S. and Europe.

The record label behind the Weeknd, Billie Eilish and Taylor Swift on Thursday reported overall revenue of 2.75 billion euros ($2.91 billion) in the three months to the end of September, up 9.9% on year at constant currency. Revenue from subscriptions grew 13% to EUR1.06 billion, while streaming revenue rose 5% to EUR357 million.

The development in streaming revenue marks a departure from the 2.2% contraction seen in the first quarter of the year, but shows that exceptional growth seen at the height of the pandemic is confined to the past. Streaming services boomed as listeners turned to digital when coronavirus restrictions brought live concerts to a standstill.

Earlier this week, Spotify Technology said it added six million new paying subscribers during the third quarter after the streaming giant raised subscription prices, following similar moves by Apple and Amazon.com on their own music-streaming offerings. Analysts say price hikes at major streaming platforms will bring in additional revenue for record labels like Universal.

Physical revenue, which includes CD and vinyl sales, jumped 20% to EUR294 million. Taylor Swift, SEVENTEEN, Morgan Wallen, Olivia Rodrigo and King & Prince were among the top sellers for the quarter.

Adjusted earnings before interest, taxes, depreciation, and amortization--a key profitability metric for Universal--climbed to EUR581 million from EUR553 million, generating a 21.1% adjusted margin.

 

Write to Mauro Orru at mauro.orru@wsj.com

 

(END) Dow Jones Newswires

October 26, 2023 12:29 ET (16:29 GMT)

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