Universal Music’s merch revenue boosted by Swifties

Universal Music Group (AMS:UMG) reported expectation-beating quarterly financials, after the market close in Amsterdam, boosted by the likes of Taylor Swift, Billie Eilish, SEVENTEEN, and Morgan Wallen.

Physical media and merchandise sales were at the heart of the performance.

At €2.93 billion, the audio rights holder saw a 9.6% jump in revenue for its second quarter,  and it was ahead of consensus estimates for €2.89 billion

It means first-half revenue totalled some €5.53 billion, up 8.8% on a constant currency basis.

Second quarter earnings (adjusted EBITDA) increased 10.0% year-on-year, to €649 million.

Drilling into the detail, streaming revenue was down 4.2% but was more than offset by ‘physical’ revenue which was up 14.4%.

In that segment, UMG highlighted a strong performance across all segments, with significant growth in music publishing and merchandising revenues – no doubt supported by the continuing Taylor Swift’s Eras Tour (currently on its European leg).

Specifically, UMG’s ‘merchandising and other’ revenue stream was up 44.6% year-over-year at €227 million for the quarter, and up 29% at €341 million for the half year. It meanwhile highlighted ‘growth in touring merchandise sales and direct-to-consumer sales’.

“We are, by design, a multifaceted music entertainment company that places our artists at the center of everything we do,” UMG chief executive Sir Lucian Grainge said in a statement.

“Our unique structure, which is both innovative and constantly evolving, enables us to support our recording artists and songwriters with an ever-expanding array of revenue sources, reinforced by new products and the exciting next phase of development of streaming services."