Music Industry Earnings: Resilience Amid Economic Challenges
Despite facing macroeconomic uncertainties and potential global tariffs, executives in the music sector affirm that the industry remains a robust investment avenue. Recent quarterly earnings reports from prominent companies illustrate this trend, particularly with revenue growth attributed to streaming subscriptions.
Key Earnings Highlights (As of May 7, 2025)
Deezer
The French streaming service reported a slight revenue uptick of 1.1%, totaling 134 million euros (approximately $145.08 million) for the first quarter. This growth is primarily attributed to a 6.3% rise in its subscriber base in France, which has now reached 9.4 million.
HYBE
South Korea’s HYBE reported a significant revenue increase of 38.7%, equating to 500.6 billion KRW ($350 million). This gain was driven by strong merchandise sales and artist tours, despite a dip in recorded music revenue, marking the second-lowest quarterly earnings since early 2023.
Live Nation
Live Nation experienced an 11% revenue decline, bringing in $3.38 billion, with a decrease in adjusted operating income by 6% to $341.1 million. While the first quarter is typically slower, indicators such as concert ticket sales and deferred revenue suggest stronger upcoming quarters.
MSG Entertainment (MSGE)
MSG Entertainment reported a 6% revenue growth, reaching $243 million for the fiscal third quarter ending March 31. Notably, the entertainment division’s revenue rose by 10%, totaling $160 million, although concert revenue dipped due to fewer promoted events.
SiriusXM
The satellite radio giant saw a decline of 303,000 subscribers, resulting in a 4% revenue drop to $2.07 billion and a 15% decrease in net income to $204 million. However, strategic adjustments helped mitigate these losses, with its podcast segment reporting a 33% revenue increase, aided by recent channel launches.
SM Entertainment
SM Entertainment reported a 5% revenue increase to $159 million, alongside a notable 110% jump in operating income, reaching $22 million. Revenue from live performances surged 58%, bolstered by major acts such as NCT 127 and aespa.
Spotify
Spotify’s revenue rose by 15% to 4.2 billion euros ($4.54 billion), aided by the addition of 5 million net new subscribers. This marks the highest first-quarter subscriber growth since early in the COVID-19 pandemic, showcasing the platform’s resilience in uncertain times.
Universal Music Group (UMG)
UMG reported an 11.8% year-over-year revenue increase, amounting to 2.9 billion euros ($3.05 billion) for the first quarter. Adjusted EBITDA also rose by 11.8% to 661 million euros, maintaining a steady EBITDA margin of 22.8%.
As more companies continue to release their earnings reports, this overview will be updated to reflect the latest financial performance within the music industry.