Universal Music Stock Jumps After Beating Revenue Expectations

Universal Music shares rose yesterday after beating revenue expectations.

Strong sales from the record giant’s artists, such as Taylor Swift and Sabrina Carpenter, helped boost sales to £2.4 billion in the third quarter, an increase of 4.3 per cent compared to a year earlier.

The world’s largest music company saw its shares rise as much as 5 percent in Amsterdam following an investor update.

They finally closed up 1.7 percent.

Analysts expected revenue in the three months to the end of September to reach £2.3bn.

Universal was boosted by a 7.6 percent increase in subscription revenue.

The firm said price increases made by streaming platforms such as Spotify also drove revenue growth.

But physical media sales fell 2 percent during the quarter, as growth in vinyl sales failed to fully offset a drop in CD purchase figures.

Deutsche Bank analyst Silvia Cuneo said it had been a “solid quarter” for the record label.