Universal Music Group (UMG) announced higher revenue for the third quarter, driven by a surge in subscriptions and streaming, as well as strong physical sales in the U.S. and Europe.
In the three months leading up to the end of September, UMG reported overall revenue of €2.75 billion ($2.91 billion), a 9.9% increase compared to the previous year at constant currency. Subscription revenue saw a notable growth of 13%, reaching €1.06 billion, while streaming revenue increased by 5% to €357 million.
This positive trend in streaming revenue is a significant turnaround from the 2.2% decline experienced in the first quarter of this year. However, it also indicates that the exceptional growth witnessed during the height of the pandemic is now a thing of the past. Streaming services flourished as listeners turned to digital platforms when live concerts were halted due to COVID-19 restrictions.
UMG also saw a substantial boost in physical revenue, which includes sales of CDs and vinyl records, rising by 20% to reach €294 million. Notable artists such as Taylor Swift, SEVENTEEN, Morgan Wallen, Olivia Rodrigo, and King & Prince were among the top sellers for the quarter.
In terms of profitability, UMG’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €581 million, surpassing last year’s figure of €553 million and generating an adjusted margin of 21.1%.
Overall, these results indicate the continued success of UMG in navigating the evolving music industry landscape by capitalizing on both the digital streaming market and physical sales.