Universal Music Group has printed its monetary outcomes for the three months to the tip of September.
The headline determine from the world’s largest music rights firm’s Q3 outcomes: UMG generated revenues of EUR €2.752 billion (USD $2.995bn) in the course of the quarter throughout all of its divisions (together with recorded music, publishing and extra).
That Q3 income determine was up 9.9% YoY at fixed foreign money.
UMG, which trades on the Euronext in Amsterdam, reported at present (October 26) that its “Recorded Music, Music Publishing and Merchandising and Different segments all contributed to the income progress within the quarter”.
Commenting on the corporate’s newest outcomes, UMG Chairman and CEO Sir Lucian Grainge, stated: “Our efficiency this quarter was marked not solely by continued progress throughout our companies but additionally by robust progress on our long-term technique.
“Our efficiency this quarter was marked not solely by continued progress throughout our companies but additionally by robust progress on our long-term technique.”
Sir Lucian Grainge
Grainge added: “We stay laser-focused on driving sustainable worth creation for the corporate and its stakeholders: figuring out and capitalizing on new income streams for UMG and our artists, responsibly advancing new expertise, and increasing our international footprint.”
UMG notes that its revenues in Q3 included a €53 million profit in Music Publishing from the accrual for a catch-up cost from sure DSPs associated to the Copyright Royalty Board Phonorecords III ruling in 2023.
The corporate’s income in Q3 additionally included a beforehand disclosed €71 million profit in Recorded Music from the settlement of a copyright infringement lawsuit with an web service supplier.
Excluding each of these things, UMG reviews that its income grew 10.6% YoY at fixed foreign money.
Universal’s total recorded music revenues for Q3 2023 (together with streaming plus bodily and so forth.) had been €2.037 billion ($2.21bn) up 5.2% YoY at fixed foreign money (see under).
Inside the Recorded Music section, UMG’s ‘Subscription and streaming revenues’ (together with ad-supported and subscription streaming revenues) grew 10.9% YoY at fixed foreign money to €1.414 billion ($1.53bn) in Q3.
Breaking down UMG’s recorded music streaming determine for Q3 additional reveals that the corporate’s subscription streaming revenues particularly grew 13% YoY at fixed foreign money to €1.057 billion ($1.15bn) and was pushed, in keeping with UMG, “primarily by the expansion in international subscribers”.
The expansion in international streaming subscribers was highlighted earlier this week, when Spotify published its personal quarterly outcomes, reporting that its Premium subscriber base grew by 6 million subs to 226 million international paying customers in Q3.
In the meantime, Common’s ad-supported recorded music streaming income was up 5% YoY at fixed foreign money (see above) to €357 million ($388.55m) in Q3.
Inside Common’s recorded music enterprise, bodily revenues grew 20% YoY at fixed foreign money to €294 million ($319.98m). UMG says that this end result was “pushed by robust vinyl gross sales, significantly within the US and Europe, in addition to multi-format bodily progress in Japan”.
UMG’s high sellers throughout the quarter included releases from Taylor Swift, SEVENTEEN, Morgan Wallen, Olivia Rodrigo and King & Prince, whereas high sellers within the prior-year quarter included BTS, BLACKPINK, Ado, INI and Morgan Wallen.
In the meantime, Common’s Music Publishing division, Universal Music Publishing Group, generated revenues of €491 million ($534.40m) in Q3 2023, up 24.6% YoY at fixed foreign money (see under).
Inside Music Publishing, Digital income grew 33.6% YoY at fixed foreign money to €294 million ($319.98m) in Q3.
Efficiency income grew 21.8% YoY at fixed foreign money to €106 million ($115.37m) in Q3.
Synchronization income grew 3.8% YoY at fixed foreign money to €55 million ($59.86m).
Common’s ‘Merchandising and Different’ income in Q3 reached €227 million ($247.06m), a rise of 27.5% YoY at fixed foreign money, pushed “by progress in direct-to-consumer gross sales and better touring merchandise gross sales”.
In Q3 2023, UMG’s EBITDA (earnings earlier than curiosity, taxes, and depreciation) fell 5.9% YoY at fixed foreign money, to €478 million ($520.25m).
EBITDA margin was 17.4%, in comparison with 20.2% within the third quarter of 2022 (see under).
In response to UMG, its EBITDA and EBITDA margin had been impacted by non-cash share-based compensation bills of €103 million throughout Q3 2023, in comparison with €14 million in the course of the third quarter of 2022.
Common reviews that its Adjusted EBITDA for Q3 was €581 million ($632.36m), up 11.3% YoY at fixed foreign money.
Adjusted EBITDA margin improved to 21.1% in Q3, in comparison with 20.8% in Q3 2022.
Additionally commenting on UMG’s Q3 outcomes, Boyd Muir, UMG’s EVP, CFO and President of Operations, stated: “For the ninth consecutive quarter as a stand-alone public firm, we as soon as once more reported robust progress in income and Adjusted EBITDA.
“At the same time as we ship present outcomes, we proceed to execute on the expansion prospects that lie forward for UMG.”
Boyd Muir, UMG
Added Muir: At the same time as we ship present outcomes, we proceed to execute on the expansion prospects that lie forward for UMG.”
All references to YoY percentages on this story, whether or not acknowledged as such or not, are in fixed foreign money. All EUR-USD conversions made on the common price of the related interval in keeping with the European Central Financial institutionMusic Enterprise Worldwide