Universal Music Revenue Beats Forecasts Amid Subscriptions Growth

By Mauro Orru

Universal Music Group posted revenue above analysts' expectations for the second quarter, lifted by growth in subscriptions.

The record label behind Taylor Swift, Billie Eilish and Ariana Grande reported revenue of 2.93 billion euros ($3.18 billion) for the three months to the end of June, up 9.6% on year at constant currency. Analysts had forecast revenue of EUR2.89 billion, according to consensus estimates compiled by Visible Alpha.

Universal said revenue from subscriptions increased 6.9% at constant currency to EUR1.14 billion, citing growth in its global subscriber base as well as the benefit of price increases across streaming platforms.

However, streaming revenue contracted 3.9% at constant currency to EUR343 million due to slowing growth at some advertising-based platform partners and inconvenient deal-renewal timings with certain platforms.

Adjusted earnings before interest, taxes, depreciation and amortization--a key profitability metric for Universal--climbed to EUR649 million from EUR590 million, generating a 22.1% adjusted margin. Analysts had forecast EUR645.4 million in adjusted Ebitda, according to Visible Alpha.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

July 24, 2024 12:19 ET (16:19 GMT)

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