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Universal Music Group (UMG) exceeded first-quarter core profit expectations, propelled by Taylor Swift’s blockbuster tour and sales growth across all business segments.
Impressive Financial Results:
UMG reported adjusted core earnings (EBITDA) of 591 million euros, marking a robust 15.9% year-on-year increase and surpassing analysts’ expectations of 567 million euros.
The company’s strong performance was reflected in its sales growth, reaching 2.59 billion euros for the quarter, a 7.9% increase in constant currency terms.
Taylor Swift’s Contribution:
Taylor Swift’s highly successful Eras Tour, spanning 152 shows across five continents, generated over $1 billion in ticket sales, cementing its status as the world’s highest-grossing concert tour.
Additionally, Swift’s latest album, released in April, continues to dominate charts, contributing significantly to UMG’s earnings through royalties from streaming, album sales, and concert tickets.
UMG highlighted other top sellers in the quarter, including artists such as Noah Kahan, Morgan Wallen, Ariana Grande, and Olivia Rodrigo, further diversifying the company’s revenue streams.
Strategic Partnerships:
UMG’s collaboration with TikTok, resulting in a new licensing agreement, is expected to enhance the visibility of the label’s songs and artists on the social media platform, fostering broader audience engagement and revenue opportunities.
