Common Music Group generated almost $1 billion from subscription streaming in Q3
Over the summer time, Invoice Ackman’s Pershing Sq. predicted this Common Music Group “can improve income at an annual price of about 10% for greater than a decade”.
Proper now, Common is taking over that problem.
UMG launched its monetary outcomes for the three months to the top of September in the present day (October 27). The corporate reported third-quarter income of €2.664 billion ($2.68 billion) in all of its divisions (together with recorded music, publishing, and so forth.).
This third quarter income was up 13.3% over one yrat fixed trade charges, pushed by development in all income segments.
Yr-to-date, within the first 9 months of 2022, Common’s income has grown 15.6%Annual at fixed trade price at €7.398 billion($7.44 billion).
recorded music
Common’s total recorded music income for the third quarter of 2022 (together with streaming and bodily, and so forth.) was €2.06 billion ($2.07 billion), on the high 10.1% yr over yr at fixed trade charges (see under).
“Subscription and streaming income” (together with ad-supported and subscription-based streaming income) elevated 7.7% yr over yr at fixed trade price at €1.35 billion ($1.359 billion).
Breaking down this recorded music streaming determine additional reveals that Common subscription streaming income particularly elevated 8.7% over one yrat fixed trade price at €991 million($998 million)pushed, in accordance with UMG, “by continued good development in music subscribers”.
Common ad-supported recorded music streaming income, in the meantime, has elevated 5.2% per yrat fixed trade price (see under) at 362 million euros ($364.5 million).
UMG stated this development displays “continued enchancment in ad-based monetization, regardless of industry-wide advert market strain because of the unsure macro atmosphere.”
UMG’s recorded music income within the third quarter included a €71 million ($71.5 million) profit from the settlement of a copyright infringement lawsuit with an Web service supplier.
Inside Common’s recorded music enterprise, bodily income declined 9.6% yr over yr at fixed trade price at €264 million ($265.8 million).
UMG stated the decline was “pushed by the {industry}’s transition to digital consumption and a troublesome comparability with robust bodily sellers within the prior yr quarter.”
“Licensing and different income” elevated 30.2%Annual at fixed trade price at €306 million ($308.1 million)pushed, in accordance with UMG, “by the robust resumption of reside excursions”.
Bestsellers of the quarter included BTS, BLACKPINK, Teen, INI and Morgan Wallenwhereas prior yr quarter high sellers included Olivia Rodrigo, BTS, Billie Eilish, Drake and King & Prince.
“Merchandising and others”
Apart from streaming development, the principle spotlight of Common’s third-quarter outcomes was income generated by its Merchandising and Others phase.
Common’s merchandising income grew by an enormous quantity 101.1% yr over yrat fixed trade price at €189 million ($190.32 million). This development got here, in accordance with UMG, “as touring-related merchandising income rebounded from a COVID-related downturn in reside touring within the prior yr interval.”
Yr-to-date (9 months ending September 30), Common’s Merchandising and Different income phase 80.6% at fixed currencies to 437 million euros ($440 million) (see under).
Music publishing
Elsewhere, Common’s music publishing division, Common Music Publishing Group, generated income of 418 million euros($420.9 million) within the third quarter of 2022.
It was up 6.9% per yrat fixed trade charges, regardless of a 21 million euros destructive impression through the quarter of a “beforehand introduced change in accounting coverage”
Excluding the impression of this modification in firm accounting, Common’s music publishing income elevated 12.3% over one yr in fixed forex.
Inside music publishing, digital income elevated 17% yr over yrat fixed trade price at €234 million ($235.6 million)“reflecting continued streaming and subscription development, partially offset by the change in firm accounting,” in accordance with UMG.
Sync income elevated 7.5% yr over yr at fixed trade price at €57 million ($57.4 million). This is because of “elevated promoting and movie income,” UMG stated.
Mechanic income plummeted 21.9% yr over yr at fixed trade price at €25 million ($25.2 million). The corporate stated this was on account of “an industry-wide decline in bodily gross sales, in addition to the change within the firm’s accounting.”
“Greater than ever, we provide a various and rising vary of enterprise and artistic alternatives for our artists and songwriters.”
Sir Lucien GraingeChairman and CEO of UMG, stated: “Greater than ever, we provide a various and rising vary of enterprise and artistic alternatives to our artists and songwriters.
“By way of our innovation, international attain, and distinctive understanding of market evolution, we frequently enhance the monetization of music and music-related content material, driving high-quality income and recurring income from over sources than ever earlier than.”
Boyd MuirEVP, CFO and President of Operations of UMG, added: “Our imaginative and prescient of success is to maximise the long-term worth of the corporate.
“This not solely requires income development, but additionally a large range of income streams that assist drive larger absolute EBITDA and larger shareholder worth.”
EBITDA and so forth.
Within the third quarter, UMG’s EBITDA (earnings earlier than curiosity, taxes, depreciation and amortization) elevated 15.4%Annual at a relentless trade price, €539 million ($542.8 million)pushed by income development and the aforementioned authorized settlement with a DSP.
All EUR-USD conversions on this report for the third quarter of 2022 have been made on the prevailing quarterly common price as recognized by the European Central Financial institution.The music {industry} all over the world
