Universal Music Group posted higher revenue for the second quarter, boosted by an acceleration in subscriptions and streaming growth.

The music company behind Lady Gaga and Taylor Swift said revenue for the three months through June increased over 13% on year at constant currency to 3.29 billion euros, equivalent to $3.77 billion. Analysts had forecast 3.27 billion euros in revenue, according to Visible Alpha.

Revenue from subscriptions and streaming grew 15.4% at constant currency to 1.76 billion euros, slightly below analysts' forecast of 15.5% growth. Still, that marked an acceleration from the 11% growth the company recorded in the first quarter.

Subscriptions and streaming cooled in recent years following a surge during the pandemic, but remain a key focus for investors as they are part of the group's recorded music business, which accounts for the lion's share of revenue.

Universal said revenue from subscriptions alone increased 16.6% at constant currency to 1.37 billion euros, citing benefits from price increases and a stronger slate of releases that let it gain market share. Meanwhile, streaming revenue grew 11.5% at constant currency to 389 million euros. Analysts had forecast 17.9% growth in subscriptions and 9.2% growth in streaming, according to Visible Alpha.

Physical revenue, which includes vinyl sales, grew 15.9% at constant currency to 342 million euros, with strength in the U.S. and Europe. The company said top sellers in the quarter included Noah Kahan, BTS, Olivia Rodrigo, Drake and Olivia Dean.

Adjusted earnings before interest, taxes, depreciation and amortization--Universal's preferred measure of profitability--slipped to 674 million euros from 676 million euros a year earlier, generating a 20.5% adjusted margin. Analysts had forecast adjusted Ebitda of 707.9 million euros, according to Visible Alpha.

Second-quarter figures come about two months after the company's board unanimously rejected a $65 billion bid from Bill Ackman's Pershing Square Capital, saying the proposal undervalued the group.

The billionaire had sought to get Universal listed in the U.S., saying its stock price had languished due to what Pershing called uncertainty in relation to Bollore's stake in the company, the underutilization of UMG's balance sheet and the lack of a publicly disclosed capital allocation plan.

In response, the record label said it had expanded its 500 million-euro share buyback to 1 billion euros, and would sell half of its roughly 3% stake in Spotify Technology and channel funds to buy back shares.