UMG Universal Music Group NV

By Mauro Orru

Universal Music Group NV--the record label behind the Weeknd, Billie Eilish and Taylor Swift--is raising its dividend despite booking lower profit for 2022.

The world's largest music company on Thursday posted an annual net profit of 782 million euros ($834.4 million), down 11.7% from 2021. The record label said it plans to pay shareholders a dividend of EUR0.51 per share, above the EUR0.40 per share it paid for the previous year. Universal aims to hand 50% of net profit to shareholders.

For the three months to the end of December, overall revenue climbed to EUR2.94 billion from EUR2.52 billion. Revenue from subscriptions grew 11.4% at constant currency to EUR1.04 billion, while ad-supported streaming revenue rose 1.8% to EUR400 million.

However, growth cooled down compared with the third quarter, when streaming revenue grew 5.2% at constant currency. Streaming services boomed at the height of the pandemic as listeners turned to digital when coronavirus restrictions brought live concerts to a standstill, though the pace of growth has declined in recent months.

Adjusted earnings before interest, taxes, depreciation, and amortization--a key profitability metric for Universal--increased to EUR620 million in the fourth quarter from EUR503 million, generating an adjusted margin of 21.1%.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

March 02, 2023 12:16 ET (17:16 GMT)

Universal Music Group NV (EU:UMG)
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