Taylor Swift helps fuel Universal Music Group's third-quarter revenue

 

[2/2] Taylor Swift attends a premiere for Taylor Swift: The Eras Tour in Los Angeles, California, U.S., October 11, 2023. REUTERS/Mario Anzuoni/File Photo 

Oct 26 (Reuters) - Cultural phenomenon Taylor Swift helped fuel revenue at Universal Music Group (UMG.AS) in the third quarter, the world's largest record label said Wednesday.

Total revenue was 2.75 billion euros ($2.9 billion) in the quarter, up 3.3% for the year. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) stood at 581 million euros, up 5.1%, the company reported.

When adjusting for constant currency, revenue was up nearly 10% in the quarter and adjusted EBITDA rose 11.3%.

EBITDA for the quarter fell 11.3% to 478 million euros, reflecting the impact of non-cash share-based compensation expenses of 103 million euros during the quarter.

Recorded music sales totaled 2 billion euros, down 1.1% from a year ago. Subscription revenue rose 6.7% to more than 1 billion euros in the quarter, though revenue from ad-supported free streaming services declined 1.4%, reflecting a soft advertising market.

Revenue from music publishing rose 17.5% to 491 million euros, while merchandise sales increased 20.1% to 227 million euros.

The top sellers for the quarter included Taylor Swift, Seventeen, Morgan Wallen, Olivia Rodrigo and King & Prince.

($1 = 0.9496 euro)

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