Universal Music Rides Streaming and Physical Gains to 11.5% Bump in Quarterly Revenue

26 April, 2023

Universal Music Group’s revenues rose 11.5% to 2.45 billion euros ($2.71 billion) last quarter, as sales generated by Morgan Wallen, Taylor Swift, TOMORROW X TOGETHER bolstered results in both recorded music and music publishing.

The world’s biggest music company reported revenue from its recorded music division rose 11.7% to 1.92 billion euros ($2.1 billion) in the quarter ending March 31 compared to the same period a year ago. Revenue from subscriptions and streaming rose by nearly 10% to 1.33 billion euros ($1.47 billion) and physical revenue rose a whopping 32% to 313 million euros ($346 million), while revenue from downloads and other digital revenue — the smallest line item in the division — fell by 19.1% to 55 million euros ($60 million).

The publishing division’s overall revenues rose 13.3% to 425 million euros ($469 million), with digital revenue contributing the most, increasing by nearly 21% from a year ago to 231 million euros ($255 million). Synchronization revenue rose around 11% to 69 million euros ($76 million), while performance revenue slipped 1% to 90 million euros ($99 million).

“Our strong start to the year demonstrates our consistency in developing great artists and introducing their music to fans around the world,” UMG chairman and chief executive Lucian Grainge said in a statement. “We look forward to building on this momentum and furthering our track record of transforming disruptive technologies into opportunities to accelerate our business for our artists, fans and shareholders.”

Overall earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter fell by nearly 43% to 261 million euros ($288 million), driven primarily by equity-based compensation expenses UMG began rolling out in the fourth quarter of 2022. Stripping out those compensation expenses, UMG reported adjusted EBITDA rose 14.7% to 522 million euros ($576 million) compared to the year-ago quarter, and adjusted EBITDA margin grew 0.6 percentage points to 21.3%.

UMG’s Earnings Highlights:

  • Revenue rose 11.5%, or 9.3% in constant currency, to 2.45 billion euros ($2.71 billion) versus the year ago quarter.
  • EBIDTA fell 42.5% to to 261 million euros ($288 million)
  • Adjusted EBITDA rose 14.7% to 522 million euros ($576 million)
  • Adjusted EBITDA margin grew 0.6 percentage points to 21.3%

Recorded Music Division Highlights:

  • Recorded music revenue overall rose 11.7% to 1.92 billion euros ($2.1 billion)
  • Subscriptions and streaming revenue rose by nearly 10% to 1.33 billion euros ($1.47 billion)
  • Physical revenues rose 32% to 313 million euros ($346 million)
  • License and other revenue rose 9.2% to 226 million euros ($250 million)
  • Downloads and other digital revenue fell by 19.1% to 55 million euros ($60 million)

Music Publishing Highlights:

  • Music publishing revenues overall rose 13.3% to 425 million euros ($469 million)
  • Digital revenues rose by nearly 21% from a year ago to 231 million euros ($255 million)
  • Performance revenues slipped 1% to 90 million euros ($99 million)
  • Synchronization revenues rose around 11% to 69 million euros ($76 million)