Universal Music Posts Strong Q1 Earnings, Powered by ‘Encanto’ and the Weeknd

variety.com:

Jem Aswad Senior Music EditorWhile year-over-year growth in the wake of a global pandemic is an unprecedented metric for the music industry, Universal Music Group posted a robust first quarter for 2022, with revenue up 21.6% (16.5% in constant currency) to €2.199 billion ($2.31 billion).

Many of these boosts are at least partially a result of the gradual reopening of the world’s economy after the lockdown of the pandemic.Music publishing revenue was up 32.5%, recorded-music revenue up 11.3% and merchandising and other revenue up a whopping 69.8% year-over-year in constant currency.The company’s adjusted EBITDA increased 14.0% year-over-year in constant currency.Recorded Music revenues for the first quarter of 2022 were €1,721 million, up 16.0% compared to the fourth quarter of 2021, or 11.3% in constant currency.

Subscription and streaming revenue grew 19.9% year-over-year, or 14.6% in constant currency, with subscription revenue up 18.3% year-over-year, or 13.4% in constant currency, and ad-supported streaming revenue up 25.1% year-over-year, or 18.4% in constant currency.

Physical revenue showed another quarter of strong growth, increasing by 11.3% year-over-year, or 8.7% in constant currency, on improvements in both CD and vinyl sales, led by King & Prince, Fujii Kaze, Ado, Stromae and Taylor Swift.