Strong subscription revenue helped Universal Music Group’s first quarter revenue rise 11.8% year over year (or 9.5% in constant currency) to 2.9 billion euros ($3.05 billion at the average exchange rate in the first quarter), the company announced Tuesday (April 29). Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also rose 11.8%, to 661 million euros ($695 million). Adjusted EBITDA margin was flat at 22.8%.
Recorded music revenue improved 12.7% to 2.24 billion euros ($2.36 billion). Subscription revenue grew 11.5% to 1.25 billion euros (1.31 billion). thanks to growth in global subscribers. Other streaming revenue — such as ad-supported streaming — rose just 2.9% to 353 million euros ($371 million) as consumption continued to shift to short-form video platforms which produce lower royalties than better monetized video platforms. Vinyl sales in the U.S. and Europe helped physical revenue jump 17.6% to 300 million euros ($316 million). Licensing and other revenue improved 33.3% to 296 million euros ($311 million).
In the music publishing segment, total revenue grew 11.9% to 555 million euros ($584 million). Digital revenue jumped 19.4% to 339 million euros ($357 million) due to continued growth in streaming and subscription platforms. Performance revenue was flat at 114 million euros ($120 million), which the company attributed to higher PRO payouts in the U.S. and stronger live activity in Europe in the prior-year quarter
Merchandising revenue dropped 1.8% to 112 million euros ($118 million). A decline in touring-related merchandise sales was partially offset by growth in direct-to-consumer sales.
“Our strong results – and our confidence about the future – reflect the execution of our strategic plan, including consistently developing and breaking the world’s most successful artists and songwriters by connecting them with billions of fans in new and innovative ways,” chairman/CEO Lucian Grainge said in a statement.
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