July 24 (Reuters) - Universal Music Group, the

label representing Taylor Swift, BTS and Drake, on Wednesday

recorded higher than expected second quarter sales, driven by

growth across all areas.

Second-quarter revenue totalled 2.93 billion euros, up 9.6%

year-on-year in constant currency terms, beating the 2.89

billion euros expected by analysts, according to a Visible Alpha

consensus.

WHY IT'S IMPORTANT

UMG is benefiting from its leading position in the sector, with

rights to around one third of the world's repertoire. The $54

billion company has seen its profit driven by the success of pop

sensation Taylor Swift.

CONTEXT

In the first quarter, Universal reported earnings above

expectations, helped by the record-breaking success of its star

act Taylor Swift. The commercial success of Swift has boosted

the group's earnings through royalties from streaming, album

sales and concert tickets.

In parallel, it signed a deal with TikTok, restoring the

label's songs and artists to the social media platform from the

end of May.

Swedish audio-streaming giant Spotify ( SPOT ) beat its

premium subscriber guidance on Tuesday, recording a 12% growth

year-on-year to 246 million subscribers. The group also forecast

third quarter operating income , at 405 million euros, ahead of

301.7 million euros consensus.

BY THE NUMBERS

Adjusted EBITDA for the second quarter rose 10.0%

year-on-year, to 649 million euros, ahead of analysts

expectation of 645 million euros, according to Visible Alpha

consensus.

Streaming revenues came in below expectations, at 343

million euros, while analysts expected 387 million euros,

according to Visible Value consensus quoted by ING.

Streaming revenue fell 4.2% year-over-year or 3.9% in

constant currency, "due to a deceleration in growth at key

advertising-based platform partners as well as shortfalls on

certain platforms related to the timing of deal renewals," the

company said.