Universal Music Group has reported its financial results for Q3.
For the three months to September 30, the major increased revenue by 9.9% at constant currency to €2.752 billion. The result was driven by “healthy constant currency growth in all segments”.
Excluding items affecting comparability, revenue grew 10.6% in constant currency.
Top sellers in the quarter included Taylor Swift, Seventeen, Morgan Wallen, Olivia Rodrigo and King & Prince. The major is now in a busy Q4 period with releases from Taylor Swift, The Beatles and Take That.
Recorded music subscription revenue was up 13% year-on-year in constant currency, while streaming revenue (ad-funded) grew 5% in constant currency.
Physical revenue increased 20.0% in constant currency, driven by strong vinyl sales, particularly in the US and Europe, as well as multi-format physical growth in Japan
Adjusted EBITDA of €581m represented an 11.3% increase in constant currency.
For the first nine months of the year, UMG increased revenue by 9.4% in constant currency to €7.901bn. Excluding items affecting comparability, revenue grew 11.1% in constant currency.
Music Publishing revenue totaled €491 million in the third quarter of 2023, up 24.6% in constant currency.
Revenue in the third quarter of 2023 included a €53 million benefit in music publishing from the accrual for a catch-up payment from certain DSPs related to the Copyright Royalty Board Phonorecords III ruling.
"Our performance this quarter was marked not only by continued growth across our businesses but also by strong progress on our long-term strategy," said UMG’s chairman and CEO Sir Lucian Grainge. "We remain laser-focused on driving sustainable value creation for the company and its stakeholders: identifying and capitalising on new revenue streams for UMG and our artists, responsibly advancing new technology, and expanding our global footprint."
Boyd Muir, UMG's EVP, CFO & president of operations, said: “For the ninth consecutive quarter as a standalone public company, we once again reported strong growth in revenue and adjusted EBITDA. Even as we deliver current results, we continue to execute on the growth prospects that lie ahead for UMG."
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