Universal Music Group has released its financial results up to the third quarter of 2024 (the period to September 30).
For Q3, UMG reported revenue of €2.87 billion, a year-on-year increase of 4.9% in constant currency (all figures will be constant currency), with growth in all segments.
Excluding a prior-year item affecting comparability (a €53 million catch-up payment from DSPs related to the Copyright Royalty Board Phonorecords III ruling in 2023), revenue grew 7.0% year-on-year.
Recorded music revenues for the third quarter were €2.146bn, up 6.2% year-on-year. Recorded music subscription revenue grew 8.2%, while streaming revenue (ad-funded) inched up by 0.3%.
Music Publishing revenue amounted to €500m in the third quarter of 2024, up 2.2% year-on-year.
Adjusted EBITDA of €621m represented an increase of 8.2%. Excluding that prior-year item affecting comparability, adjusted EBITDA grew 10.3%.
Top sellers in the quarter included Taylor Swift, Sabrina Carpenter, Billie Eilish, Chappell Roan and Post Malone.
We are already making progress on the strategic initiatives we outlined at our recent Capital Markets Day
Sir Lucian Grainge
For the nine months, revenue was up 7.4% year-on-year to €8.396bn, driven by strong growth in all segments. Excluding the DSP payments one-off in the prior year, revenue grew 8.2%.
For the nine months, recorded music revenues were €6.335bn, up 6.3% year-on-year. Recorded music subscription revenue grew 9.2% year-on-year and streaming (ad-funded) revenue grew 1.8%.
In the nine months to September 30, music publishing revenue amounted to €1.508bn, up 10.0% year-on-year.
Adjusted EBITDA of €1.862bn was an increase of 11.7%.
Top sellers for the nine months included Taylor Swift, Billie Eilish, Morgan Wallen, Sabrina Carpenter and Noah Kahan.
“Even as we continue to grow revenue and adjusted EBITDA, we are already making progress on the strategic initiatives we outlined at our recent Capital Markets Day,” said Sir Lucian Grainge, UMG’s chairman and CEO. "We continue to advance our artist-centric strategy, a key pillar of our work to evolve streaming’s underlying business model, or what we call ‘Streaming 2.0’. Through these initiatives, we are setting the stage for a new wave of streaming growth and new opportunities to UMG, its artists, songwriters and shareholders.”
UMG also announced that EVP, CFO and president of operations, Boyd Muir, has been promoted to the newly created role of chief operating officer, continuing to report directly to Sir Lucian Grainge. The company is immediately initiating an executive search process to identify a new CFO. Muir will serve as both COO and CFO until a replacement is found.
Muir has served as CFO of UMG since 2010 and was previously CFO for Universal Music Group International for 11 years.
“Boyd has done an outstanding job leading UMG’s global financial functions through a period of unprecedented growth and change, including our successful listing on the Euronext in 2021, and our last three years as a stand-alone public company,” said Sir Lucian. “Now, as we turn to executing on the vision we outlined at our recent Capital Markets Day, as chief operating officer, Boyd will focus on helping us drive the transformation of several of our key worldwide operations to ensure we deliver on our strategic plan.”
Boyd Muir, UMG’s EVP, CFO and president of operations, said: “Our focus remains on maximising the long-term value of the business. The diversity of our revenue is not only driving attractive results in revenue and adjusted EBITDA growth for UMG this quarter, but also positioning the company for strong continued growth in the coming years.”
PHOTO: Austin Hargrave
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