By Leo Marchandon
(Reuters) -Universal Music Group on Thursday reported third-quarter revenue above market expectations with Taylor Swift’s new release boosting physical album sales.
The world’s biggest music label, which also counts South Korean boy band BTS in its portfolio, said quarterly revenue grew 5% year-on-year to 3 billion euros ($3.5 billion), topping the 2.95 billion average analyst forecast provided by LSEG.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 7% to 594 million euros.
Streaming and subscription, which account for more than half of UMG’s income, only grew around 2% to 1.52 billion euros. Income from streaming platforms shrank by 5% as consumers shifted to less profitable platforms, the company said, without giving further details.
TAYLOR SWIFT BOOSTS PHYSICAL SALES, NOT STREAMING
UMG’s physical sales, accounting for around 10% of total revenue, rose 18.5% to 341 million euros, lifted by Swift’s ‘The Life of a Showgirl’ release.
“What Taylor has achieved with her 12th studio album is literally breathtaking,” CEO Lucian Grainge said on an earnings call. “The biggest first week in music history now belongs to ‘The Life of a Showgirl’,” he added.
The record sold over four million copies in the United States, and a further five and a half million globally, handing Swift her fifteenth number one album spot, a record for a solo artist.
However, the release has not significantly lifted streaming revenue, as UMG already benefits from premium rates on Swift’s existing catalog.
Analysts said that global streaming adoption has plateaued, limiting further growth.
“Our music chart tracker reveals that UMG artists held a 54% share of the global top 50 songs in Q3 2025, sequentially higher than Q2”, Deutsche Bank analyst Silvia Cuneo said in a note.
FOCUS ON ‘SUPERFANS’
UMG is diversifying its revenue streams through merchandising, tiered subscription services with exclusive content, and premium digital experiences, targeting the cost-committed “superfans” of top artists.
Merchandising revenue rose 9% year-on-year to 259 million euros, driven by stronger sales of touring merchandise, although growth was tempered by the timing of new product launches, the company said in a statement.
“Looking ahead, Q4 should incrementally benefit from the new Taylor Swift album released in October”, Cuneo added.
($1 = 0.8575 euros)
(Reporting by Leo Marchandon; Editing by Matt Scuffham, Kirsten Donovan)
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