The Ledger: 5 Big Takeaways from the Music Industry’s Q3 Earnings Reports

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Despite economic headwinds, reports from UMG, Spotify, Live Nation and more point to continued strength in the sector heading into 2023.

Here are five quick takeaways from third-quarter earnings and the statements made by the companies’ management teams. The subscription business model is insulating creators and rights holders from economic uncertainty

. Music royalties are popular with investors in part because they are counter-cyclical, meaning their returns have little correlation with changes in the broader market. Put another way, when the economy sours, people are more likely to cut back on grocery spending or travel than cancel a Spotify subscription.

. Among the companies currently engaged in stock repurchase programs are Spotify, MSG Entertainment, Cumulus Media, Audacy, SiriusXM, Townsquare Media and LiveOne. Spotifya $1 billion share buyback program in August 2021, and it spent $2 million and $24 million repurchasing shares in the second and third quarters, respectively. Cumulus Media has $21.1 million remaining in its $50 million share repurchase authorization announced in May.

in May to give the company’s board the ability to repurchase up to 10% of the issued share capital. . Believe’s revenue in Asia Pacific and Africa grew 61.1% to 52.3 million euros , about the same as its European revenues excluding France and Germany. Spotify’s “rest of world” markets improved their share of monthly active users to 26% in the third quarter, up from 21% in the prior-year period.

 

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