Universal Music Group has reported its financial results for the second quarter and first half of 2024.
The major’s revenue increased by 8.8% at constant currency to €5.526 billion during the first six months of the year. While recorded music revenue grew at 6.3%, publishing revenue surged by 14.3% and merchandising revenue leaped by 29.7%.
For the first half of the year, recorded music subscription revenue grew by 9.6% and streaming revenue (ad-funded) grew 2.5%. Physical revenue growth was flat, while license and other revenue grew 10.2%.
The major reported adjusted EBITDA of €1.24 billion, an increase of 13.4%.
During Q2, UMG revenue increased by 9.6%, driven by growth across all segments. Recorded music revenue grew 6.8% during the quarter, while music publishing increased by 10.4% and merchandising was up by 43.7%.
Q2’s recorded music subscription revenue grew 6.9%, while streaming revenue (ad-funded) decreased by 3.9%.
Physical revenue increased by 14.4% during the quarter, a result helped by the strong sales for The Tortured Poets Department by Taylor Swift – in the UK alone the album has moved 255,515 copies on physical formats, according to the Official Charts Company. Meanwhile, license and other revenue grew 18.0%.
As well as Taylor Swift, top sellers in the quarter included Billie Eilish, Seventeen, Morgan Wallen and Ae! Group. Top sellers for the half-year included Taylor Swift, Morgan Wallen, Noah Kahan, Billie Eilish and Ariana Grande.
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
Sir Lucian Grainge
UMG achieved a 12th consecutive quarter of at least high single-digit revenue growth since the major’s listing on the Euronext exchange almost three years ago. It was also a seventh consecutive quarter of double-digit increase in adjusted EBITDA.
UMG’s chairman and CEO Sir 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 centre 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 sdjusted 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.”
UMG reported that cash paid for catalogue acquisitions was €96 million for the first half of 2024, compared to €89 million in the first six months of 2023. The 2024 total included the completion of a catalogue acquisition for which the cash had been previously paid into escrow.
In addition, the company made investments in Chord Music Partners, Ntwrk and Mavin Global during the half-year.
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