UMG Universal Music Group NV

By Mauro Orru

Universal Music Group NV--the record label behind the Weeknd, Billie Eilish and Taylor Swift--posted higher revenue for the third quarter as subscriptions and streaming continued to grow, albeit at a slower pace than earlier this year.

The world's largest music company said Thursday that revenue for the three months to the end of September climbed to 2.66 billion euros ($2.68 billion) from EUR2.15 billion last year.

Universal's recorded-music business, which encompasses subscription and streaming, accounted for the lion's share of revenue. Subscription revenue grew 8.7% at constant currency to EUR991 million, while streaming revenue rose 5.2% to EUR362 million.

However, streaming growth cooled down considerably compared with the second quarter, when streaming revenue jumped 16% at constant currency. Streaming services enjoyed a banner two years as listeners turned to digital when coronavirus restrictions brought live concerts to a standstill, though the pace of growth has slowed in recent months.

Adjusted earnings before interest, taxes, depreciation, and amortization--a key profitability measure for Universal--rose to EUR553 million from EUR461 million last year.

Universal was expected to post revenue of EUR2.54 billion and adjusted earnings of EUR527 million, according to Visible Alpha consensus.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

October 27, 2022 12:15 ET (16:15 GMT)

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