Universal Music Posts $3.2 Billion Revenue in Second Quarter, Publishing up 10% as Streaming Revenue Dips

Universal Music Group, the world’s largest music company, has reported a mixed second quarter for 2024, with revenue of $3.2 billion, an increase of 8.7% year-over-year, or 9.6% in constant currency.

Motion Picture Academy and UMG Renew Jonas Gwangwa Music Composition Initiative

Recorded music revenue grew 5.8% year-over-year, or 6.8% in constant currency; music publishing grew 10.1% year-over-year, or 10.4% in constant currency; and merchandising grew 44.6% year-over-year, or 43.7% in constant currency, according to the report. Recorded music top sellers included Taylor Swift, Billie Eilish, Seventeen and Morgan Wallen.

While recorded music subscription revenue grew 6.5% year-over-year (6.9% in constant currency), streaming revenue decreased 4.2% year-over-year, or 3.9% in constant currency, while physical revenue grew 9.5% year-over-year, or 14.4% in constant currency and license and other revenue grew 18.0% year-over-year on both a reported and constant currency basis. The report follows a challenging first quarter that saw UMG fighting a challenging battle over royalties with the social media platform TikTok and undergoing substantial layoffs.

According to the announcement, other highlights include:

•    Revenue of €5,526 million increased 7.3% year-over-year, or 8.8% in constant currency, driven by growth across all segments

•    Recorded Music revenue grew 4.7% year-over-year, or 6.3% in constant currency, while Music Publishing grew 13.4% year-over-year, or 14.3% in constant currency and Merchandising grew 29.2% year-over-year, or 29.7% in constant currency

•    Recorded Music subscription revenue grew 8.5% year-over-year, or 9.6% in constant currency and streaming revenue grew 1.8% year-over-year, or 2.5% in constant currency, while physical revenue declined 4.2% year-over-year, but grew 0.3% in constant currency and license and other revenue grew 9.3% year-over-year, or 10.2% in constant currency

Universal Music U.K. Restructures, Merging Island and EMI Labels

•    Adjusted EBITDA of €1,240 million increased 11.5% year-over-year, or 13.4% in constant currency, and Adjusted EBITDA margin expanded 0.8 percentage points to 22.4%

•    EPS of €0.50 per share compared to €0.34 in the first half of 2023 and Adjusted EPS of €0.44 per share compared to €0.42 in the first half of 2023

•    Interim dividend of €439 million, or €0.24 per share

UMG chairman-CEO Lucian Grainge said, “Our continued strong revenue growth this quarter demonstrates that we are, by design, a multifaceted music entertainment company that places our artists at the center of everything we do.  Our unique structure, which is both innovative and constantly evolving, enables us to support our recording artists and songwriters with an ever-expanding array of revenue sources, reinforced by new products and the exciting next phase of development of streaming services.”

“Our varied revenue streams, across both emerging and established businesses, allowed us to once again achieve high-single digit revenue growth and double-digit Adjusted EBITDA growth this quarter” said Boyd Muir, UMG’s EVP, CFO and President of Operations. “We continue to invest into the growth we see ahead of us as we execute against our long-term strategic plan.”

Major Labels Sue AI Music Services Suno and Udio for Copyright Infringement