Universal Music Group has revealed figures for the nine months to September 30 showing a 40.8% year-on-year increase in subscription and streaming revenues.
The increase was enough to offset the continued decline in download and physical sales, though the Q4 results for the latter should see a bump thanks to streaming holdout Taylor Swift.
Universal Music Group revenues were €3.985 billion (£3.56 billion), up 10.9% on constant currency compared to the first nine months of 2016.
The Q3 figures showed recorded music revenues grew by 12.1% (at constant currency) compared to the first nine months of 2016. Music publishing revenues increased by 9.6% off the back of strong streaming results as well as growth in sync income and performance royalties.
Merchandising and other activities were down 2.8% for the first nine months compared to 2016.
The latest results follow a strong performance for the first half of the year.
The biggest albums globally for Universal so far this year include releases by Kendrick Lamar and Drake as well as The Weeknd’s late 2016 release Starboy. La La Land, Sgt Pepper’s Lonely Hearts Club Band and the Moana soundtrack also sold well.
UMG’s income from operations was €472m (£422m), up 20.9% at constant currency compared to the first nine months of 2016. EBITA was 442m (£395m), an increase of 25.5%.
For the three months, UMG revenues were up by 0.8% year-on-year to €1.32 billion (£1.18 billion).