Shares of Universal Music are jumping after it beat revenue expectations
Strong sales: Sabrina Carpenter
Shares of Universal Music rose yesterday after beating revenue expectations.
Strong sales from the recording giant’s artists such as Taylor Swift and Sabrina Carpenter helped boost third-quarter revenue to £2.4 billion, up 4.3 percent from a year earlier.
The largest music company in the world saw its shares rise by no less than 5 percent in Amsterdam after the investor update.
Ultimately, they closed 1.7 percent higher.
Analysts had expected sales to reach £2.3 billion in the three months to the end of September.
Universal got a boost from a 7.6 percent increase in subscription revenue.
The company said price increases from streaming platforms such as Spotify also boosted revenue growth.
But physical media sales fell 2 percent during the quarter as growth in vinyl sales failed to fully offset the decline in CD purchases.
Deutsche Bank analyst Silvia Cuneo said it was a “solid quarter” for the record label.
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