# Universal Music Q3 earnings beat expectations, streaming growth slows Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-28 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: UMG's Third-Quarter Earnings Beat Expectations Despite Slowed Streaming Growth Meta Description: Universal Music Group NV (UMG) reported better than expected Q3 core earnings, boosted by legal settlement and strong sales of BTS, BLACKPINK, Ado, INI, and URL: https://financedigest.com/universal-music-q3-earnings-beat-expectations-streaming-growth-slowshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-27t203155z2lynxmpei9q0q4rtroptp4umg-results-1736814957230-compressed.jpg) AMSTERDAM (Reuters) -Universal Music Group NV (UMG), the largest record label, on Thursday reported better than expected third-quarter core earnings due to a legal settlement, though streaming revenue growth slowed. The company said top sellers in the quarter included Korean pop band BTS, BLACKPINK, Ado, INI and Morgan Wallen. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were 539 million euros ($538 million), compared with 426 million euros in the third quarter of 2021. Analysts had forecast EBITDA at 524 [million euros](https://www.financedigest.com/hellofresh-sees-2023-core-profit-of-460-540-million-euros.html "HelloFresh sees 2023 core profit of 460-540 million euros"), according to Refinitiv data. Revenue rose 13.3% to 2.66 [billion euros](https://www.financedigest.com/telecoms-group-orange-signs-sustainability-linked-refinancing-of-6-billion-euros-syndicated-credit-facility.html "Telecoms group Orange signs sustainability-linked refinancing of 6 billion euros syndicated credit facility"), with streaming and subscription revenue up 7.7%. The revenue figure included a 71 [million euro](https://www.financedigest.com/amazon-grants-1-5-million-euros-to-dutch-seaweed-farm-project.html "Amazon grants 1.5 million euros to Dutch seaweed farm project") benefit due to the settlement of a copyright infringement lawsuit, which also influenced EBITDA. Although still healthy, the slower revenue [growth relative to the first half of this year was largely timing-related,” Chief Financial Officer](https://www.financedigest.com/impact-com-appoints-new-chief-people-officer-to-lead-people-growth-and-excellence.html "impact.com Appoints New Chief People Officer to Lead People Growth and Excellence") Boyd Muir said on a post-earnings call. He noted the [third quarter](https://www.financedigest.com/greek-residential-property-price-recovery-picks-up-in-third-quarter.html "Greek residential property price recovery picks up in third quarter") of 2021 had “included new releases from Billy Eilish and from Drake, as well as a significant Olivia Rodrigo carryover. Ad-supported streaming revenues had slowed “consistent with worldwide advertising trends, which [continue to impact this part of our business](https://www.financedigest.com/brand-metrics-continues-on-steep-growth-trajectory-with-appointment-of-vp-business-development-in-the-us.html "Brand Metrics continues on steep growth trajectory with appointment of VP Business Development in the US"), “he said. UMG, which competes against Warner Music Group and Sony, was spun out of [France’s Vivendi](https://www.financedigest.com/frances-vivendi-sells-2-9-of-universal-to-pershing-square-for-1-15-billion.html "France’s Vivendi sells 2.9% of Universal to Pershing Square for .15 billion") in 2021. Shares closed down about 1% at 20.78 euros in Amsterdam, after surging more than 10% earlier this week on news Apple had [raised prices](https://www.financedigest.com/analysis-to-raise-prices-or-not-consumer-goods-makers-weigh-bets-on-buyer-strength.html "Analysis-To raise prices or not? Consumer goods makers weigh bets on buyer strength") for its Apple Music streaming service. Universal, whose artists include Taylor Swift and Justin Bieber, receives a cut of royalties when their music is [streamed on Apple Music or other streaming](https://www.financedigest.com/uk-competition-watchdog-has-music-streaming-in-its-sights.html "UK competition watchdog has music streaming in its sights") platforms like Spotify. ($1 = 1.0020 euros) (Reporting by Toby Sterling; editing by David Evans, Bernadette Baum and Jonathan Oatis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---