The world’s largest music company reported revenues of €2.9 billion (approximately $3.39 billion) for the period ended March 31, representing an 8.1% year-on-year increase at constant currency. The growth reflects a combination of pricing gains, catalogue strength, and expanded global reach.
Streaming and Acquisitions Drive Growth
A key contributor to UMG’s performance was the consolidation of Downtown Music Holdings, alongside early benefits from its “Streaming 2.0” pricing strategy. These factors, combined with improved synchronization income, helped lift revenues across both recorded music and publishing divisions.
According to the company’s financial statement released on April 29, overall revenue remained flat year-on-year in reported terms but showed strong underlying growth when adjusted for currency fluctuations.
Recorded music subscription revenue stood out, rising 12.5% year-on-year at constant currency to €1.303 billion. This increase was driven by improved pricing agreements with streaming platforms and additional contributions from the Downtown acquisition.
Strong Performance Across Core Segments
Total recorded music revenue grew 8.9% to €2.253 billion, while overall streaming revenue—including subscription and ad-supported tiers—rose 10.9% to €1.642 billion.
Ad-supported streaming posted a more modest 5% increase to €339 million, reflecting an ongoing shift toward short-form video platforms, which typically generate lower revenue per stream.
Physical music sales also delivered a notable boost, climbing 12.7% year-on-year to €310 million, with strong demand recorded in major markets such as the United States and Japan.
Profitability remained solid, with adjusted EBITDA reaching €636 million ($744.3 million), translating to a margin of 21.9% as UMG continued to balance expansion with cost discipline.
Mixed Results in Other Segments
Despite the overall positive performance, some areas saw declines. Licensing and other revenue fell 3.6% year-on-year due to the absence of one-off live income recorded in the same period last year. Meanwhile, downloads and other digital formats dropped 5.6%, highlighting the industry’s continued shift away from legacy consumption models.
Global Stars Fuel Consumption
UMG’s dominance in global music trends was reflected in the performance of its artists. Top contributors during the quarter included BTS, Taylor Swift, Olivia Dean, Morgan Wallen, and the KPop Demon Hunters soundtrack.
Their success underscores the company’s ability to leverage diverse genres and global fanbases to drive streaming and sales.
Expanding Footprint in Africa
Beyond its financial performance, UMG continues to deepen its presence in emerging markets. In 2024, the company secured a majority stake in Mavin Records, a leading Nigerian label founded by Don Jazzy.
The partnership strengthens UMG’s position in Africa’s rapidly growing music industry, with artists like Rema and Ayra Starr gaining increasing global recognition and streaming success.
Outlook
Chairman and CEO Lucian Grainge emphasized that UMG remains focused on long-term growth through talent investment, technological innovation, and deeper fan engagement worldwide.
As the global music industry continues to evolve, UMG’s performance highlights the growing importance of streaming economics, strategic acquisitions, and international expansion in shaping the future of the business.