UMG’s Half-Year Revenue Rises 6.9% YOY

Universal Music Group (UMG) has posted strong half-year gains, with growth in music publishing revenue a standout.

Q2: The figures

• Revenue of €2,980 million, an increase of 1.6% YOY, or 4.5% in constant currency, driven by growth in Recorded Music and Music Publishing segments.

• Recorded Music revenue grew 1.1% YOY to €2,224 million, or 3.9% in constant currency.

• Music Publishing revenue grew 11.5% YOY to €570 million, or 14.5% in constant currency.

• Merchandising and Other revenue declined 15.4% or 12.7% in constant currency, explained by execs as an expected dip after the conclusion of Taylor Swift’s Eras tour.

• Recorded Music subscription revenue grew 5.3% YOY, or 8.5% in constant currency, driven primarily by the growth in global subscribers.

• Streaming revenue increased 4.4% YOY or 9.1% in constant currency.

• Physical revenue decreased by 13.2% YOY, or 12.4% in constant currency, due to what UMG calls “a difficult comparison against last year’s strong release schedule.”

• Adjusted EBITDA of €676 million increased 4.2% YOY, or 7.3% in constant currency.

• Adjusted EBITDA margin expanded 0.6pp to 22.7%.

• Top sellers for the quarter included releases from Morgan Wallen, timelesz, Lady Gaga, Sabrina Carpenter and INI.

H1: The figures

• Revenue of €5,881 million, an increase of 6.4% YOY or 6.9% in constant currency, driven by growth in the Recorded Music and Music Publishing segments.

• Recorded Music revenue grew 6.5% YOY to €4,464 million, or 7.0% in constant currency.

• Music Publishing revenue grew 11.6% YOY to €1,125 million, or 12.1% in constant currency, a result of the growth in streaming and subscription revenue and improvement in performance, synchronisation and mechanical revenue.

• Merchandising and Other revenue declined 10.6%, or 10.0% in constant currency.

• Recorded music subscription revenue grew 8.4% YOY, or 8.9% in constant currency.

• Streaming revenue grew 3.8% YOY, or 4.6% in constant currency.

• Physical revenue declined 0.2% YOY, or 0.5% in constant currency.

• Top sellers included Lady Gaga, Morgan Wallen, Sabrina Carpenter, Kendrick Lamar and The Weeknd.

• Adjusted EBITDA of €1,336 million increased 7.7% YOY, or 8.5% in constant currency.

• Adjusted EBITDA margin expanded 0.3pp to 22.7%.

What they said:

• Sir Lucian Grainge, UMG Chairman and CEO: “It is the powerful combination of our artists’ and songwriters’ creative excellence with our strategic vision and execution that continues to deliver UMG’s strong results.”