Universal Music Rides Streaming Growth to $2.3B Revenue in Q1

Universal Music Rides Streaming Growth to $2.3B Revenue in Q1

Universal Music Group’s revenue grew 21.6% to to 2.2 billion euros ($2.31 billion, up 16.5% at constant currency) in the first quarter of 2022, the company announced Tuesday. Every aspect of the company posted a double-digit gain except for downloads, the once-high flying format that’s now the smallest revenue stream in its recorded music business.

In UMG’s recorded music division, revenue grew 16.0% to 1.72 billion euros ($1.81 billion) led by an 18.3% improvement in subscription revenue to 900 million euros. Overall, streaming revenue grew 19.9% to 1.21 billion euros ($1.27 billion). Physical revenue grew 11.3% to 237 million euros ($249 million). Licensing and other revenue improved 14.4% to 207 million euros ($218 million) due to stronger synchronization revenue. Download revenue fell 16% to 68 million euros.

Universal Music Publishing Group’s revenue grew 38.4% to 375 million euros ($394 million). Part of that increase was a benefit from UMG’s new accounting policy for recognizing revenue collected from collecting societies. This change primarily benefitted digital, performance and mechanical revenues. Digital revenue had the highest growth rate 51.6% — and largest revenue 191 million euros ($201 million) — of all segments. Synchronization revenue grew 34.8% to 62 million euros. Performance royalties grew 19.7% to 91 million euros ($96 million). And mechanical royalties rose 278% to 23 million euros ($24 million) due to an industry-wide recovery.

The return of live music meant big gains at UMG’s merchandising division, Bravado. Merchandising and other revenue rose 81.4% to 107 million euros ($113 million).

“As important as the positive performance of the business this quarter is its breadth and strength,” said Sir Lucian Grainge, UMG’s Chairman and CEO, in a statement. “Our strategic portfolio approach–creatively, geographically, technologically, and across a broad range of artists, partners, formats, businesses and revenue streams–not only deliver results now but, over the long run, we believe will produce an even better and more stable performance while delivering incredible value to our artists and shareholders.”

This is a developing story.

Universal Music Rides Streaming Growth to $2.3B Revenue in Q1 Universal Music Group’s revenue grew 21.6% to to 2.2 billion euros ($2.31 billion, up 16.5% at constant currency) in the first quarter of 2022, the company announced Tuesday. Every aspect of the company posted a double-digit gain except for downloads, the once-high flying format that’s now…