Universal Music Group, the world’s largest music company, posted strong third-quarter results on Thursday despite an uncertain economic environment.
Revenue increased 13.3% to €2.66 billion, with streaming and subscription revenues growing 7.7x. The turnover included his €71 million profit from the settlement of an unspecified copyright infringement lawsuit. This is almost certainly a settlement of a copyright infringement lawsuit against Bright House Networks by a major music company.
Based on constant currency conversions, Recorded Music revenue increased 10.1%, Music Publishing revenue increased 6.9%, and Merchandise and Other revenue increased 101.1% in the third quarter ending Q3. surged. Adjusted earnings before interest, tax, depreciation and amortization were €539 million ($538 million), compared with €426 million in Q3 2021.
Top sellers for the quarter included South Korean superstars BTS, Blackpink, Japanese singer Ado and controversial country singer Morgan Wallen, according to the company.
UMG Chairman and CEO Lucian Grainge said: “Through our innovation, global reach, and unique understanding of market evolution, we are continuously improving the monetization of music and music-related content, delivering high-quality revenue and revenue from more sources than ever before. It generates recurring income.”
Boyd Muir, EVP, CFO and President of Operations, UMG, said: To do that, we need to not only increase our earnings, but also increase our broad and diversified revenue streams that help drive absolute EBITDA and value for our shareholders. ”
The company’s share price fell by about 1% in Amsterdam to €20.78. After Apple announced that it would increase the price of its Apple Music streaming service, it saw a massive increase of more than 10%.