{"id":230171,"date":"2025-04-29T18:23:15","date_gmt":"2025-04-29T17:23:15","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=230171"},"modified":"2025-04-29T19:58:17","modified_gmt":"2025-04-29T18:58:17","slug":"umg-generated-3bn-in-q1-up-9-5-yoy-driven-by-kendrick-lamar-sabrina-carpenter-and-more-superstars","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/umg-generated-3bn-in-q1-up-9-5-yoy-driven-by-kendrick-lamar-sabrina-carpenter-and-more-superstars\/","title":{"rendered":"UMG generated $3bn+ in Q1 – up 9.5% YoY, driven by Kendrick Lamar, Sabrina Carpenter, and more superstars"},"content":{"rendered":"

It’s been a busy day for financial news from publicly traded companies.<\/p>\n

This morning (April 29), South Korean entertainment giant HYBE<\/a>, and Spotify<\/a>, the world’s biggest subscription music streaming platform, announced their respective Q1 results.<\/p>\n

Now, it’s the turn of Universal Music Group<\/strong>, the world’s largest music rights company.<\/p>\n

The headline stat from UMG’s Q1 results (for the three months to end of March), filed on Tuesday (April 29): The company generated revenues of EUR \u20ac2.901 billion (USD $3.052bn)<\/strong>\u00a0across all of its divisions (including recorded music, publishing and more).<\/p>\n

That Q1 revenue figure was up 9.5% YoY<\/strong> <\/span>at constant currency, driven, according to UMG, by solid growth in Recorded Music and Music Publishing.<\/p>\n

Another big highlight from UMG’s Q1 results was the company’s subscription streaming revenues, which grew\u00a09.3%<\/span><\/strong>\u00a0<\/strong>YoY<\/span><\/strong> at constant currency to reach <\/span>\u20ac1.252 billion<\/strong>\u00a0($1.317bn)<\/strong> in Q1.<\/strong><\/p>\n

Photo: Austin Hargrave<\/figcaption><\/figure>

\u201cOur strong results \u2013 and our confidence about the future \u2013 reflect the execution of our strategic plan, including consistently developing and breaking the world\u2019s most successful artists and songwriters by connecting them with billions of fans in new and innovative ways.”<\/p>\n

Sir Lucian Grainge<\/span><\/p><\/blockquote>\n

Commenting on the company’s latest earnings announcement, UMG\u2019s Chairman and CEO Sir Lucian Grainge, said: \u201cOur strong results \u2013 and our confidence about the future \u2013 reflect the execution of our strategic plan, including consistently developing and breaking the world\u2019s most successful artists and songwriters by connecting them with billions of fans in new and innovative ways.”<\/p>\n

<\/div>
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RECORDED MUSIC<\/h6>\n

Universal\u2019s overall Recorded Music revenue for the first quarter of 2025 was \u20ac2.241 billion<\/strong> ($2.358bn), up 10.3% YoY<\/strong><\/span> at constant currency\u00a0(see below).<\/p>\n

Within the Recorded Music segment, UMG\u2019s \u2018Subscription and streaming revenues\u2019 (including ad-supported and subscription streaming revenues) grew 7.2<\/strong>%<\/span> YoY<\/strong><\/span>\u00a0at constant currency to\u00a0\u20ac1.605 billion ($1.688bn)<\/strong>.<\/p>\n

Breaking UMG\u2019s recorded music streaming figure down further reveals that the company\u2019s\u00a0subscription<\/em> streaming revenues specifically grew 9.3%<\/span> YoY<\/span><\/strong> at constant currency to reach \u20ac1.252 billion<\/strong>\u00a0($1.317bn), <\/strong>primarily driven, according to UMG, “by the growth in global subscribers”.<\/p>\n

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<\/div> <\/div> <\/p>\n

Universal\u2019s ad-supported recorded music streaming revenue, meanwhile, grew 0.3% YoY<\/strong><\/span> at constant currency to reach \u20ac353 million ($371.46m). According to UMG, this result reflected “consumption contin[uing] to shift from better monetized video platforms to short-form platforms, which are not yet as well monetized”.<\/p>\n

Within Universal\u2019s recorded music business, Physical revenue increased 15.4% YoY<\/strong> <\/span>at constant currency to \u20ac300 million ($315.69m)<\/strong>, driven by vinyl sales growth in the US and Europe.<\/p>\n

License and other revenue increased 29.8% YoY<\/strong><\/span> at constant currency to \u20ac296 million<\/strong> ($311.48m), driven, according to UMG, by “particularly strong live income in certain markets, as well as by growth in synchronisation income”.<\/p>\n

Top sellers for the quarter included releases from Kendrick Lamar, Sabrina Carpenter, Lady Gaga, The Weeknd and Mrs. GREEN APPLE.<\/strong><\/p>\n

<\/div> <\/div> <\/p>\n
MUSIC PUBLISHING<\/h6>\n

UMG’s Music Publishing division, Universal Music Publishing Group<\/strong>, generated revenues of \u20ac555 million<\/strong> ($584.02m) in Q1, up 9.5% YoY<\/strong><\/span> at constant currency.<\/p>\n

Digital revenue grew 16.9% YoY<\/strong><\/span> at constant currency to \u20ac339 million ($356.72m)<\/strong>, driven, according to UMG, “by continued growth in streaming and subscription revenue”.<\/p>\n

Performance revenue declined 1.7% YoY<\/strong><\/span> at constant currency to \u20ac114 million ($119.96m)<\/strong>. According to UMG, there was “difficult comparison against higher society payments in the US and stronger live activity in Europe in the prior year quarter”.<\/p>\n

Synchronization revenue, meanwhile, was flat at constant currency, at \u20ac64 million ($67.34m). Mechanical revenue grew by 4% YoY<\/strong><\/span> at constant currency to reach \u20ac26 million ($27.35m)<\/strong>.<\/p>\n

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\n
Merchandising and Other<\/h6>\n

UMG’s Merchandising and Other revenue in the first quarter of 2025 reached \u20ac112 million<\/strong> ($117.85m) in Q1, a decrease of 5.1% YoY<\/strong><\/span> at constant currency.<\/p>\n

According to UMG, “timing-related declines in touring merchandise sales were partially offset by healthy growth in direct-to-consumer sales”.<\/p>\n

\n
EBITDA ETC.<\/h6>\n

In Q1 2025, UMG\u2019s EBITDA<\/strong> (earnings before interest, taxes, and depreciation) grew 21.6% YoY<\/strong><\/span> at constant currency to \u20ac603 million<\/strong> ($634.53m).<\/p>\n

EBITDA margin was 20.8%<\/strong>, compared to 18.9% <\/strong>in the first quarter of 2024.<\/p>\n

Adjusted EBITDA for Q1 was \u20ac661 million<\/strong> ($695.57m), up 10% YoY<\/strong><\/span> at constant currency.<\/p>\n

Adjusted EBITDA margin remained consistent at 22.8%<\/strong> (see below).<\/p>\n

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Commenting on the results, Boyd Muir, COO and CFO of UMG, added: \u201c2025 is off to a strong start, with multi-faceted revenue growth in recorded music and music publishing as well as healthy Adjusted EBITDA growth.<\/p>\n

“Our focus on our key strategic initiatives positions us to achieve our mid-term financial objectives.\u201d<\/p>\n

\n

All EUR-USD conversions made at the average rate of the relevant period according to the European Central Bank<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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