UMG Q3 2026 Revenue Hits €3.39 Billion Driven by Downtown Acquisition

Universal Music Group (UMG) reported third-quarter 2026 revenue of €3.394 billion, up 11.7% year-on-year at constant currency. The figure includes the contribution from Downtown Music Holdings, which UMG acquired on February 20, 2026. Underlying growth was driven by streaming subscriptions, physical sales, and digital publishing.

Financial performance:

• Revenue grew 11.7% YoY at constant currency, including Downtown, which contributed €195 million.

• Excluding Downtown, revenue increased 5.3% YoY at constant currency.

• Adjusted EBITDA rose 9.0% at constant currency to €729 million, with a margin of 21.5%, down from 22.0% a year earlier.

• Excluding Downtown, adjusted EBITDA grew 7.0% at constant currency and the margin expanded 0.4 percentage points to 22.4%.

Recorded Music:

• Revenue increased 14.7% YoY at constant currency to €2.559 billion, or 7.4% excluding Downtown.

• Subscription streaming revenue grew 19.2% YoY at constant currency to €1.422 billion, supported by wholesale price increases and subscriber growth.

• Excluding Downtown, subscription growth was 9.5% YoY at constant currency.

• Physical revenue climbed 17.4% YoY at constant currency to €392 million, both including and excluding Downtown, with broad-based strength across North America, Japan and Europe.

• Top sellers included Mrs. Green Apple, Olivia Rodrigo, Stray Kids, Ariana Grande, and The Beatles.

• Adjusted EBITDA margin, excluding Downtown, expanded 1.2 percentage points to 26.2%, aided by lower relative A&R costs and tighter marketing and overhead spending.

Publishing and Merchandising:

• Music Publishing revenue grew 7.5% YoY at constant currency to €590 million, or 1.5% YoY excluding Downtown at constant currency.

• Digital growth was partly offset by softer ad-supported streaming revenue and weaker synchronization activity.

• Synchronization revenue was flat at constant currency overall, but declined 4.7% YoY at constant currency excluding Downtown.

• Merchandising and Other revenue fell 4.6% YoY at constant currency to €248 million, primarily due to lower touring income compared with a prior-year quarter featuring more high-profile tours.

• Direct-to-consumer growth provided a partial offset.

What they said:

• Matt Ellis, UMG’s CFO: “This quarter showed clear progress: subscription revenue growth accelerated, and Adjusted EBITDA margin excluding Downtown expanded by 40 basis points, led by stronger margins in Recorded Music. We are focused on sustaining that progress, capturing the strategic and financial benefits of Downtown, and improving efficiency across the whole company.”