Universal Music Group stock gains from Q3 momentum and Adobe deal

Universal Music Group N.V. combined stronger third-quarter operating momentum with a new creator-focused licensing channel during the week. The company reported its results for the quarter ended September 30 on Thursday, October 29, while Adobe announced the Premiere mobile agreement on Tuesday, November 3.

Universal Music Group said third-quarter revenue reached 3.394 billion euros, up 12.3 percent year over year. Constant-currency growth was 11.7 percent including Downtown, while growth excluding Downtown was 5.3 percent.

Subscription growth leads the quarter

Recorded Music subscription revenue rose 19.2 percent in constant currency, or 9.5 percent excluding Downtown. The company cited wholesale price increases and continued subscriber growth, while physical revenue increased 17.4 percent.

Adjusted EBITDA grew 9.0 percent in constant currency. Excluding Downtown, it increased 7.0 percent, and the adjusted EBITDA margin expanded by 0.4 percentage points to 22.4 percent. Recorded Music was the main margin contributor, while Music Publishing and Merchandising remained weaker.

Adobe broadens creator access

Adobe announced that Premiere mobile will add fully licensed music clips from UMG and Warner Music Group. The feature is scheduled to arrive soon and will let users browse, search and preview music and add clips of up to 60 seconds to videos. The announced licenses cover personal, non-commercial use; Adobe Stock Audio remains available for commercial projects.

Universal Music Group stock traded at 17.04 euros on Lang & Schwarz at 12:26 CET on Saturday, November 7. The real-time quote of Universal Music Group stock is available for investors following the next market move.

European media and technology shares remain sensitive to advertising demand, streaming trends and licensing developments; see the Euro Stoxx 50 market overview.

For more company-specific developments, see more news and analyses on Universal Music Group stock.