Universal Music Group has released its financial results for the first quarter of 2022.
Across all of its divisions (including recorded music, publishing and more), the world’s largest music rights holder recorded revenue in the three months to the end of March from 2.199 billion euros ($2.46 billion).
This increased by 16.5% year-on-year at constant currency, driven by growth across all revenue segments.
Recorded music streaming was UMG’s main revenue driver in the first quarter of 2022, growing 14.6% year-over-year at constant currency to reach 1.209 billion euros ($1.35 billion ).
Overall recorded music revenue (including streaming and physical, etc.) for the first quarter of 2022 was €1.721 billion ($1.93 billion), up 11.3% from constant exchange rate (see below).
Elsewhere, Universal’s recorded music revenue rose 8.7% year-over-year at constant currency to 237 million euros ($265.84 million), due to what UMG believes is “improvements in CD and vinyl sales, led by King & Prince, Fujii Kaze, Ado, Stromae and Taylor Swift”.
Recorded music best sellers for the quarter included “Encanto” soundtrack releases from Disney, King & Prince, The Weeknd, Fujii Kaze and Ado.
In the first quarter, Universal’s EBITDA (earnings before interest, taxes, depreciation and amortization) increased 14.1% year-on-year at constant currency, to €454 million ($509.25 million) .
UMG’s overall adjusted EBITDA in the first quarter – across all of its divisions – was €455 million ($510.37 million), up 14% year-on-year at constant currency.
Universal’s music publishing division, Universal Music Publishing Group, generated revenue of €375 million ($420.63 million) in the first quarter of 2022, up 32.5% year-over-year at constant exchange rate.
UMG notes that it has adjusted its accounting policy with respect to certain revenue collected through corporations, primarily affecting digital, performance, and mechanical music publishing revenue.
UMG said of this accounting policy adjustment: “In previous years, this revenue was recognized when the relevant collection company informed UMG of the end customer’s usage and collection was assured.
“Recognition of such revenue is now based on an adjustment of the best available estimate of when the use occurs and the amount of consideration likely to be collected. This affected the timing of certain revenue recognition in financial reporting quarters, with an advantage for the first quarter of 2022 over the prior year. »
UMPG’s digital revenue grew 44.7% year-over-year at constant currency to €191 million ($214.24 million), reflecting continued growth in streaming, as well as change in accounting previously mentioned.
Synchronization revenue increased 29.2% year-on-year at constant currency to €62 million ($69.54 million), which UMPG says is the result of increased revenue from advertising and film.
UMG says its music publishing revenue “also benefited from underlying organic growth trends and initial contributions from catalog acquisitions made in previous years.”
Elsewhere, UMG’s merchandising and other revenue reached €107 million ($120 million), up 69.8% year-on-year at constant currencies.
UMG attributes the increase to the rebound in its tour-related merchandising revenue, following the slowdown in live touring during the pandemic.
“Equally important to the company’s positive performance this quarter is its breadth and strength.”
Sir Lucian Grainge
Sir Lucian Grainge, Chairman and CEO of UMG, said: “As important as the company’s positive performance this quarter is its breadth and strength.
“Our strategic portfolio approach – creative, geographic, technological and across a wide range of artists, partners, formats, businesses and revenue streams – not only produces results now, but, in the long term, we think it will produce even better and more. stable performance while delivering incredible value to our artists and shareholders.
“We remain excited about the broad-based revenue growth our strategy is delivering.”
Boyd Muir, UMG
Boyd Muir, executive vice president, chief financial officer and president of operations of UMG, said, “With the results of this quarter, we continue to deliver on our commitment to long-term growth in the main business units of the company and in its growing multiple revenue streams, including advertising. – support for streaming, subscription, physical, licensing, music publishing and merchandising, among others.
“We remain excited about the broad-based revenue growth our strategy is delivering.”
All EUR-USD conversions in this report for the first quarter of 2022 have been made using the prevailing average rate as identified by the European Central Bank.The music industry around the world
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