15.4 C
New York
Friday, September 30, 2022

Buy now

BTS and Olivia Rodrigo Contribute to a Rise in Universal Music Group Revenue

The second quarter results for Universal Music Group were higher on Wednesday due to growth across all of its divisions. It also include its recorded music division, which benefited from the releases of artists like BTS and Olivia Rodrigo.

The French telecom and media conglomerate Vivendi spun off the major music company last fall. It is now headed by chairman and CEO Lucian Grainge.

Also read: The top ten western films of all time

Music has proven to be incredibly robust in economic downturns

During the quarterly earnings conference call, management was questioned about the macro-economic problems and whether it intended to take any actions to decrease expenses in light of the high inflation rate and concerns about an impending economic recession. Grainge responded, “Music has proven to be incredibly robust in economic downturns. “I think I’ve gone through four of them.”

Also read: Bob Rafelson Death Cause: How the New Hollywood Era director dies?

“This team that we have here managed those headwinds multiple times in the past,” the CEO continued. We are now monetizing content from more sources than ever before since music is a cheap form of entertainment with amazing customer value. As shown during the COVID-19 epidemic, Grainge remarked that the company’s senior management across all of its companies and territories “constantly monitors both our fixed and variable costs.” Shopkeeping runs in our blood.

Earnings climbed by 18.7% in the second quarter for Universal Music Group

Earnings before interest, taxes, depreciation, and amortisation, or EBITDA, a crucial indicator of profitability, climbed by 18.7% in the second quarter to 507 million euros ($512 million), or 8.8% on a constant currency basis.

The quarterly profit increased by 25.4% to 2.54 billion euros ($2.57 billion), or 17.3% when constant exchange rates are used. The improvement was a result of the company’s recorded music, music publishing, and “merchandising and other” areas.

Top-Selling Artists

According to the firm, the top-selling artists in the most recent quarter were BTS, King & Prince, Rammstein, O. Rodrigo, and INI. The artists with the best-selling albums in the previous quarter were BTS, J. Bieber, Olivia Rodrigo, The Weeknd, and Morgan Wallen.

The second quarter saw a rise in music publishing revenue of 62.5 percent, or 50.6 percent in constant currency terms, to 476 million euros ($481 million). The business cited an accounting adjustment as a growth driver, as well as “strong growth from streaming and subscription, the wider monetization of music licencing rights, a steady comeback in physical sales, as well as first contributions from library purchases completed in recent years.” Sting’s complete song library, which includes rock anthems from The Police singer like “Roxanne,” “Every Breath You Take,” and “Message in a Bottle,” was announced to be purchased by UMG in February. Financial details weren’t made public.

Also read: David Warner, a Titanic actor, passes away at the age 80 from cancer-related sickness

Boyd Muir, executive vice president, chief financial officer, and president of operations, said: “We’re producing incremental revenue and EBITDA through a number of appealing monetization possibilities, which in turn allows us to intelligently reinvest in the company long-term growth.”

Thank you for reading. Leave us a comment if you liked it!

Don’t forget to follow us on: Facebook | Instagram | Twitter | LinkedIn

Have a Good Day ahead

Raunak Aggarwal
Raunak Aggarwalhttp://factstalky.com
Raunak Aggarwal is an optimistic person striving to achieve a bright future ahead.

Related Articles

Leave a reply

Please enter your comment!
Please enter your name here

Stay Connected

164,934FansLike
76,382FollowersFollow
23,764FollowersFollow

Latest Articles