Universal Music Revenue Beats Forecasts Amid Strong Subscriptions and Streaming Growth

By Mauro Orru

Universal Music Group posted revenue above analysts' expectations for the first quarter, driven by growth in subscriptions and streaming.

The record label behind Taylor Swift, Billie Eilish and Ariana Grande on Thursday reported revenue of 2.59 billion euros ($2.78 billion) for the January through March quarter, up 5.8% on year. Analysts had forecast revenue of EUR2.58 billion, according to consensus estimates compiled by Visible Alpha.

Adjusted earnings before interest, taxes, depreciation and amortization--a key profitability metric for Universal--climbed to EUR591 million from EUR522 million, generating a 22.8% adjusted margin.

Universal's quarterly results come hours after the record label struck a new licensing deal with TikTok, allowing the return of its artists' songs to the popular video-sharing app after months of disagreements over pay.

The new deal includes better remuneration for Universal artists, and the companies said they were working to bring all music back to the platform.

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

(END) Dow Jones Newswires

May 02, 2024 12:11 ET (16:11 GMT)

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