Universal Music Expected to Post Higher 3Q Revenue Despite Streaming Slowdown — Earnings Preview – MarketWatch
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Universal Music Expected to Post Higher 3Q Revenue Despite Streaming Slowdown — Earnings Preview – MarketWatch

By Mauro Orru
Universal Music Group NV is scheduled to report results for the third quarter on Thursday. Here’s what you need to know:
REVENUE FORECAST: The music company behind The Weeknd, Billie Eilish and Taylor Swift is expected to post revenue of 2.54 billion euros ($2.53 billion), according to a consensus compiled by Visible Alpha. Analysts at Citi expect revenue of EUR2.61 billion. Both forecasts are ahead of revenue of EUR2.15 billion that Universal reported last year.
EARNINGS FORECAST: Adjusted earnings before interest, taxes, depreciation and amortization–a key profitability measure for Universal–should come in at EUR527 million, according to a consensus compiled by Visible Alpha. Analysts at Citi expect adjusted earnings of EUR558 million. Both forecasts are ahead of last year’s EUR461 million result.
WHAT TO WATCH:
–STREAMING: The recorded-music business, which encompasses subscription and streaming revenue, is still expected to make up the lion’s share of revenue at the world’s largest music company. However, Citi analysts expect Universal to post streaming growth of 15% at constant currency, a slowdown from the 15.6% growth reported in the second quarter of 2022. Subscription revenue growth should instead pick up, coming in at 13% per Citi forecasts compared with 7% in the second quarter.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
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