UMG Universal Music Group NV

By Mauro Orru

Shares of Universal Music Group NV--the record label behind the Weeknd, Billie Eilish and Taylor Swift--slumped Friday after ad-supported streaming revenue grew less than expected in the latest quarter as tightening macroeconomic conditions are weighing on advertiser spending.

At 0933 GMT, Universal Music shares traded 7.7% lower at EUR19.18.

The world's largest music company said late Thursday that revenue for the three months to the end of September climbed to 2.66 billion euros ($2.65 billion) from EUR2.15 billion last year.

However, revenue from subscriptions and streaming, part of Universal's recorded-music business, grew less than analysts had expected. Subscription revenue advanced 8.7% at constant currency to EUR991 million, while streaming revenue rose 5.2% to EUR362 million.

Analysts at Citi were expecting subscription revenue growth of 13% and streaming growth of 15%.

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 Covid-19 restrictions brought live concerts to a standstill, though the pace of growth has slowed in recent months as those restrictions have largely subsided.

Universal said the uncertain macroeconomic environment was pressuring the advertising market.

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

(END) Dow Jones Newswires

October 28, 2022 05:56 ET (09:56 GMT)

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