Universal Music Group Posts $3.3B In Revenue for First Quarter

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In its initial quarter, Universal Music Group – the biggest music corporation globally – saw a 11.8% increase in yearly revenue compared to the previous year, amounting to approximately 2.9 billion euros or $3.3 billion. This growth was fueled by new releases from artists such as Kendrick Lamar, Sabrina Carpenter, Lady Gaga, and the Japanese rock band Mrs. Green Apple, as reported on Tuesday.

UMG’s recording division saw a 12.7% increase in annual earnings, reaching approximately 2.2 billion euros ($2.5 billion), primarily driven by a 9.5% rise in subscription and streaming revenue to around 1.6 billion euros ($1.8 billion). Subscription sales increased by 11.5%, while streaming income expanded by 3%. Notably, physical sales also experienced growth of 17.6%, amounting to 300 million euros ($341 million). Licensing revenue saw the largest gain at 33%, totaling 296 million euros ($338 million).

In terms of publishing, overall earnings increased by approximately 12% to roughly 555 million euros ($633 million). Digital revenue was the main driver behind this growth, accounting for an impressive 19.4% increase and being the primary income source for the publishing division, totaling 339 million euros ($387 million). The performance revenue remained stable at 114 million euros ($130 million). However, download revenue experienced a decline of 13%, mirroring wider industry trends as digital downloads continue to decrease in the streaming era, amounting to 40 million euros ($46 million).

The income from merchandise dropped by almost 2% to approximately 112 million euros ($128 million), according to the company. This decrease was primarily due to a drop in touring merchandise sales, which were affected by timing issues. However, they noted that stronger sales made directly to consumers partially compensated for this decline.

In a statement, UMG’s chairman and CEO, Lucian Grainge, highlighted our impressive outcomes and optimism for the future. This confidence stems from the successful implementation of our strategic plan, which involves nurturing and launching globally renowned artists and songwriters, while finding creative and modern methods to connect them with billions of music enthusiasts.

In the past financial quarter, we released our first earnings report since Universal Music Group (UMG) unveiled its multi-year deal with Spotify in January. During this time, UMG’s Nashville division underwent restructuring, with Cindy Mabe being replaced as CEO by Mike Harris. This month, the UMG Nashville branch was rebranded to Music Corporation of America (MCA). Additionally, UMG announced that it would be reviving its iconic Lost Highway label in Nashville.

During an earnings call on Friday, Universal Music Group (UMG) discussed exclusive fan benefits such as premium streaming packages on digital platforms. Additionally, UMG’s CEO, Lucian Grainge, mentioned the current global economic instability but emphasized music as a source of comfort during difficult times, quoting Bob Dylan’s lyrics as he expressed optimism about UMG’s future performance.

Through different phases of economic instability, Grainge noted that music has consistently shown strength. It’s affordable, captivating, and provides a unique entertainment experience. Even when family budgets are stretched, the demand for music subscriptions and purchases remains robust. The usage is consistent, making it a worthwhile investment as it enhances people’s lives.

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2025-04-29 20:25