Universal Music Group reports revenue increases of 13% during Q3 as subscription revenues are nearing $1 billion.
Universal Music Group has announced its financial results for the third quarter ended on September 30, 2022, reporting a revenue increase of 13.3%, informed by growth across all sectors. Recorded music revenue grew by 10.1%, with music publishing growing by 6.9%, while adjusted EBITDA increased by 9.1%, driven by revenue growth. The quarter’s top sellers included BTS, BLACKPINK, Ado, INI, and Morgan Wallen.
“More than ever, we are delivering a diverse and growing range of business and creative opportunities to our recording artists and songwriters,” says Sir Lucian Grainge, UMG’s Chairman and CEO. “Through our innovation, global reach, and unique understanding of the evolution of the market, we are continually improving the monetization of music and music-related content, generating high-quality revenue and recurring income from more sources than ever before.”
“Our vision of success is about maximizing the long-term value of the business,” adds Boyd Muir, UMG’s EVP, CFO, and President of Operations. “That requires not only growing revenues but also growing a broad diveristy of revenue streams that help drive greater absolute EBITDA and greater value for shareholders.”
Subscription and streaming revenue increased 19.6% year-over-year, while subscription revenue is up more than 20%. Ad-supported streaming revenue grew 18.3%, reflecting ongoing improvement in ad-based monetization, despite industry-wide advertising market pressure due to the uncertainty of the macroeconomic environment. However, physical revenue declined 5.7%, driven by the industry transition to digital consumption and a problematic comparison against stronger pre-COVID physical sellers.
License and related revenue improved by more than 40%, driven by the increased recovery in live touring. Top sellers for the quarter included BTS, BLACKPINK, and Morgan Wallen. In contrast, the top sellers in the same quarter the year prior featured Olivia Rodrigo, Billie Eilish, Drake, King & Prince, and (again) BTS.