HILVERSUM, Netherlands (CelebrityAccess) — Universal Music Group reported its financial results for the first quarter of 2023, revealing revenues of €2.451 billion, up by 11.5 % from the same period in 2022.
According to UMG, the strong revenue performance in the quarter was driven by growth, both in the label group’s recorded music division and their music publishing operations.
Revenue from recorded music grew by 11.7% overall to 1.92 billion during the quarter, bolstered by streaming and subscription revenue, which accounted for 1.329 billion. UMG also saw an expansion of revenue from physical sales, which grew to 313m from 237m during the same period in 2022.
However, downloads and other digital revenue weighed on the segment, slipping from €68 million in 2022 to €55 million during Q1 2023.
UMG’s music publishing saw overall revenue growth of 13.3% during Q1 2023, generating returns of €425 million during the quarter. Digital revenue comprised the lion’s share of the pie, accounting for €231 million, up by 20.9% year-over-year.
Revenue from mechanicals remained flat during Q1, while sync licensing grew by 11.3% to €69 million during the period. Performance revenue fell slightly, declining by 1.1% during the quarter to €90 million.
Despite revenue growth, UMG reported a slide in EBITDA, falling from 454 million in Q1 2022 to €261 million in 2023, a decline of 42.5% year-over-year. However, adjusted EBITDA improved during the same period, increasing to €522 million from €455 million, an improvement of 14.7% year-over-year.
“Our strong start to the year demonstrates our consistency in developing great artists and introducing their music to fans around the world,” said Sir Lucian Grainge, UMG’s Chairman and CEO. “We look forward to building on this momentum and furthering our track record of transforming disruptive technologies into opportunities to accelerate our business for our artists, fans and shareholders.”
