Universal Music Group has unveiled a strong set of results for the period ending June 30, 2022.
The major reported revenue of €4.734 billion for the half-year, representing growth of 16.9% year-on-year in constant currency. The results were driven by growth across all segments.
UMG’s results coincided with an impressive performance by Spotify amid challenging global economic conditions.
For Q2, UMG revenue of €2.535 billion was up 17.3% year-on-year.
Top sellers for the quarter included BTS, King & Prince, Rammstein, Olivia Rodrigo and INI. Top sellers for the six months included BTS, the Encanto soundtrack, Olivia Rodrigo, The Weeknd and King & Prince
Recorded music revenue for the half-year was up 10.1% in constant currency to €3.643 billion. Subscription revenue of €1.866 billion grew 10.0% in constant currency. When factoring in a 2021 DSP payment, subscription revenue grew 12.7% in constant currency. Ad-supported streaming revenue of €658 million grew 17.1% in constant currency. Physical revenue grew 13.4% in constant currency.
Recorded Music revenues for the second quarter of 2022 were €1.922 billion, up 9.0% year-on-year in constant currency. Excluding the 2021 DSP payment, subscription revenue increased 12.1% in constant currency.
Our strong performance across diversified revenue streams is fuelled by the successful partnerships we’ve formed with our artists
Sir Lucian Grainge
Sir Lucian Grainge, UMG’s chairman and CEO, said: “Our strong performance across diversified revenue streams is fuelled by the successful partnerships we’ve formed with our artists - both new and established - in markets around the world. The widespread growth we are producing throughout UMG demonstrates that our strategy is progressing as planned, underscoring the strength and resilience of our business and our ability to deliver for our artists and our shareholders alike.”
"We're driving incremental revenue and EBITDA through a range of compelling monetisation opportunities, which in turn enables us to thoughtfully reinvest in the business's long-term growth", said Boyd Muir, UMG's EVP, CFO and president of operations.
Adjusted EBITDA increased 11.0% year-on-year for the six-month period, and 8.3% for Q2. The results were impacted by one-time items in 2021 relating to UMG’s public listing last year.