Over the summer season, Invoice Ackman’s Pershing Sq. predicted that Universal Music Group “can develop revenues at an annual fee of 10% or so for greater than a decade”.

Proper now, Common is assembly that problem.

UMG printed its monetary outcomes for the three months to finish of September at present (October 27). The corporate posted Q3 revenues of EUR €2.664 billion (USD $2.68bn) throughout all of its divisions (together with recorded music, publishing and extra).

That Q3 income determine was up 13.3% YoY at fixed foreign money, pushed by development throughout all income segments.

Yr-to-date, throughout the primary 9 months of 2022, Common’s revenues grew 15.6% YoY at fixed foreign money to €7.398 billion ($7.44bn).

Recorded Music

Common’s total recorded music revenues for Q3 2022 (together with streaming plus bodily and so forth.) have been €2.06 billion ($2.07bn), up 10.1% YoY at fixed foreign money (see under).

‘Subscription and streaming income’ (together with ad-supported and subscription streaming revenues) grew 7.7% YoY at fixed foreign money to €1.35 billion ($1.359bn).

Breaking that recorded music streaming determine down additional reveals that Common’s subscription streaming revenues particularly grew 8.7% YoY at fixed foreign money to €991 million ($998m), pushed, in keeping with UMG, “by the continued wholesome development in music subscribers”.

Common’s ad-supported recorded music streaming income, in the meantime, grew 5.2% YoY at fixed foreign money (see under) to €362 million ($364.5m).

UMG stated that this development displays “ongoing enchancment in ad-based monetization, regardless of industry-wide ad-market stress because of the unsure macro-economic surroundings”.

UMG’s Q3 recorded music income haul included a €71 million ($71.5m) profit from the settlement of a copyright infringement lawsuit with an web service supplier.

Inside Common’s recorded music enterprise, bodily revenues declined 9.6% YoY at fixed foreign money to €264 million ($265.8m).

UMG stated that this drop was “pushed by the {industry} transition to digital consumption and a tough comparability towards sturdy bodily sellers within the prior-year quarter”.

‘License and different income’ grew 30.2% YoY at fixed foreign money to €306 million ($308.1m), pushed, in keeping with UMG, “by the sturdy restoration in reside touring”.

Prime sellers for the quarter included BTS, BLACKPINK, Ado, INI and Morgan Wallen, whereas high sellers within the prior-year quarter included Olivia Rodrigo, BTS, Billie Eilish, Drake and King & Prince.

‘Merchandising and Different’

Other than streaming development, the most important spotlight throughout Common’s Q3 earnings outcomes was the income it generated from its ‘Merchandising and Different’ section.

Common’s merch revenues grew by a whopping 101.1% YoY at fixed foreign money to €189 million ($190.32m). This development got here, in keeping with UMG, “as touring-related merchandising income rebounded following a COVID-related slow-down in reside touring within the prior yr interval”.

Yr-to-date (the 9 months ended September 30), Common’s ‘Merchandising and Different’ income section 80.6% at fixed foreign money to €437 million ($440m) (see under).

Music Publishing

Elsewhere, Common’s Music Publishing division, Common Music Publishing Group, generated revenues of €418 million ($420.9m) in Q3 2022.

That was up 6.9% YoY at fixed foreign money, regardless of a €21 million adverse affect within the quarter from a “beforehand introduced change in accounting coverage”

Excluding this Change in Society Accounting affect, Common’s Music Publishing income was up 12.3% YoY in fixed foreign money.

Inside Music Publishing, digital income grew 17% YoY at fixed foreign money to €234 million ($235.6m), “reflecting the continued development of streaming and subscription, partially offset by the Change in Society Accounting,” in keeping with UMG.

Synchronisation income grew 7.5% YoY at fixed foreign money to €57 million ($57.4m). This got here because of “elevated revenue from promoting and movie,” stated UMG.

Mechanical income fell 21.9% YoY at fixed foreign money to €25 million ($25.2m). The corporate stated that was pushed by “a decline in industry-wide bodily gross sales, in addition to the Change in Society Accounting”.

“Greater than ever, we’re delivering a various and rising vary of enterprise and inventive alternatives to our recording artists and songwriters.”

Sir Lucian Grainge

Sir Lucian Grainge, UMG´s Chairman and CEO, stated: “Greater than ever, we’re delivering a various and rising vary of enterprise and inventive alternatives to our recording artists and songwriters.

“By means of our innovation, international attain, and distinctive understanding of the evolution of the market, we’re regularly enhancing the monetization of music and music-related content material, producing high-quality income and recurring revenue from extra sources than ever earlier than.”

Boyd Muir, UMG´s EVP, CFO and President of Operations, added: “Our imaginative and prescient of success is about maximizing the long-term worth of the enterprise.

“That requires not solely rising revenues but additionally rising a broad range of income streams that assist drive higher absolute EBITDA and higher worth for shareholders.”

EBITDA and so forth.

In Q3, UMG’s EBITDA (earnings earlier than curiosity, taxes, and depreciation) grew 15.4% YoY at fixed foreign money, to €539 million ($542.8m), pushed by the income development and the aforementioned authorized settlement with a DSP.

All EUR-USD conversions on this report for Q3 2022 have been made as the typical prevailing quarterly fee as recognized by the European Central Financial institution.Music Enterprise Worldwide