Taylor Swift superfans cheer on Universal Music as record giant predicts booming profits

Superfans are expected to help drive Universal Music’s growth.

The world’s largest record company predicts its profits will grow by 10 percent each year for the next four years, while revenues will increase by 7 percent.

Universal, whose artists include Taylor Swift and Elton John, provided the forecasts in a market update yesterday.

The group pointed to “accelerating superfan monetization” and continued growth in streaming subscriptions as key drivers of its growth outlook.

In 2023, Universal posted profits of £2 billion and revenues of £9.4 billion. It has been enjoying a boost as a result of Swift’s Eras concert tour.

The tour alone increased merchandise sales revenue by 44 percent in the second quarter of this year.

Yesterday’s projections came as the group revealed its plans for the year during its capital markets day.

The targets contrast with the group’s last update in July, when Universal’s Amsterdam-listed shares fell the most since the company’s initial public offering in 2021.

Investors were left spooked after its streaming revenue disappointed them.

But Universal Music has pressed ahead with a global cost-cutting program.