Universal Music Group rocks Q3 financials
21:47, 27 October 2021
Universal Music Group NV (UMG) announced buoyant third-quarter financial results today while also marking the end of its first quarter as a publicly traded company.
Revenue across all divisions was up 16% compared to the same period last year, from $2.152bn (€1.855bn) to $2.499bn. Adjusted earnings before EBITDA (interest, taxes, depreciation, and amortisation) were $535m, an increase of nearly 21% from $443m in Q3 2020.
"Our results this quarter demonstrate the continued strength of our artist roster and catalogue, the increasingly diversified revenue streams of our business, and our ability to deliver growth for our shareholders," said Universal CFO and president of operations, Boyd Muir, in a company press release.
Three million recordings
UMG, which trades on the Euronext Amsterdam Stock Exchange, was spun off in September from its former parent company, the French media conglomerate Vivendi.
UMG discovers and develops artistic works, handling the marketing, promotion, distribution, and sales and licensing of audio and visual content. Its music catalogue features three million recordings from a diverse, star-studded roster of artists including ABBA, Louis Armstrong, The Beatles, Lady Gaga, Elton John, Queen, Nirvana, Amy Winehouse, Stevie Wonder, Marvin Gaye, and Luciano Pavarotti.
In a company press release, UMG chairman and CEO Lucian Grainge commented on the company’s Q3 showing.
“Our operational and financial performance this quarter – our first as an independent, publicly traded company – demonstrates both why UMG is the world's most successful music company, as well as how our commitment to artists’ career development and fostering innovation promotes growth across the music ecosystem,” he said.
Eilish, Drake led sales
This past quarter, new releases from Billie Eilish, King & Prince, and Drake were the top sellers, along with continued strong sales of recordings by boy band BTS and Olivia Rodrigo. Recorded music revenue was up 15.5%, while subscription and ad-supported streaming revenues jumped 14%.
UMG, which trades on the Euronext Amsterdam Stock Exchange, was spun off in September from its former parent company, the French media conglomerate Vivendi.
Universal Music’s corporate headquarters are in Hilversum, Netherlands, and its operational headquarters are in Santa Monica, California.