Universal Music’s revenue beat estimates with subscription boost

UNIVERSAL Music Group sales beat estimates in the first quarter, largely driven by an increase in its subscription and music publishing revenue.

Revenue rose 22 per cent to 2.2 billion euros (US$2.3 billion) in the first three months of the year, the world’s largest music company said on Tuesday.

Analysts surveyed by Bloomberg expected sales of 2.1 billion euros.

Adjusted earnings before interest, taxes, depreciation and amortization grew 15 per cent to 455 million euros.

Spun off from French media company Vivendi, Universal went public in Amsterdam in September.

Its subscription and music publishing divisions led the jump in revenue. Subscription sales grew 18 per cent to 900 million euros while music publishing revenue rose 38 per cent to 375 million euros. Publishing income benefited from booking certain revenues across financial reporting periods in the first quarter in line with an adjustment to Universal’s accounting policy.

The company reported growth across all segments except for downloads and other digital revenue, which dropped 16% “as download sales continue their industry-wide decline.”

Universal’s publishing division bought the catalogs of Sting and Neil Diamond this year.

Universal didn’t disclose the deals’ values, but the company purchased Bob Dylan’s entire song catalog in 2020 in a pact worth more than US$300 million.