The world’s largest music company, Universal Music Group, posted strong third-quarter results on Thursday, despite an uncertain economic environment.
Revenue climbed 13.3% to €2.66 billion, with streaming and subscription revenue up 7.7. The revenue figure included a €71 million benefit due to the settlement of an unspecified copyright infringement lawsuit, which was almost certainly the major music companies’ settlement of a copyright-infringement suit against Bright House Networks.
Recorded music revenue grew 10.1%, music publishing revenues were up 6.9% and merchandise and other revenues soared 101.1% in the third quarter ending compared to a year ago based on constant currency conversion. Adjusted earnings before interest, taxes, depreciation and amortization were €539 million ($538 million), compared to €426 million in the Q3 of 2021.
The company said top sellers in the quarter included Korean superstars BTS, Blackpink, Japanese singer Ado, and controversial country singer Morgan Wallen.
“More than ever, we are delivering a diverse and growing range of business and creative opportunities to our recording artists and songwriters,” said 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.”
Boyd Muir, UMG’s EVP, CFO and President of Operations, said, “Our vision of success is about maximizing the long-term value of the business. That requires not only growing revenues but also growing a broad diversity of revenue streams that help drive greater absolute EBITDA and greater value for shareholders.”
The company’s shares dipped around 1% to 20.78 euros in Amsterdam, after seeing a big boost of more than 10% after Apple announced it is raising prices for its Apple Music streaming service.
