Universal Music Group NV, the largest music company in the world, has reported an increase in sales in the first quarter of the year. The boost in revenue is attributed to the success of music releases by Japanese band King & Prince and American country singer Morgan Wallen. The company's revenue increased by 12% to €2.45 billion ($2.7 billion) in the first three months of the year, surpassing the average estimate of €2.42 billion by analysts surveyed by Bloomberg.
The recorded music segment of the company's business saw an increase in revenue of 12% to €1.92 billion, driven by global subscribers and CD and DVD sales in Japan. However, streaming revenue declined by 2.2% in constant currency due to the impact of a difficult economic environment on the advertising industry.
Universal Music, which is known for representing top artists such as Taylor Swift and The Weeknd, has been highlighting the need for a new "artist-centric" streaming model. The company has partnered with TIDAL and Deezer SA to explore new economic models for streaming.
Other top-selling artists in the quarter included Swift, TOMORROW X TOGETHER, and back number. As the music industry continues to evolve and adapt to new technologies, Universal Music's success in the first quarter of the year suggests that the company is well-positioned for continued growth and innovation.