Universal Music Group (UMG) has released its financial results for Q3, revealing significant growth across its divisions. From July to September, UMG reported $3.15 billion in total revenue, marking a 4.9% year-over-year increase when adjusted for currency fluctuations.
UMG’s recorded music, publishing, and merchandising segments all contributed to this revenue growth. Subscription streaming revenue rose by 8.2% year-over-year, driven by an increase in global subscribers and price hikes on certain platforms.
Overall, UMG’s recorded music revenue—including streaming and physical formats—totaled $2.356 billion, a 6.2% increase from last year. Within this, subscription streaming rose 8.2% to $1.248 billion, while ad-supported streaming showed a modest 0.3% increase to $388.8 million due to continued volatility in the digital ad market.
Physical music revenue declined slightly by 0.7% to $316.31 million, with vinyl sales mitigating the drop in CD sales, particularly in Japan. Key artists this quarter included Taylor Swift, Sabrina Carpenter, and Billie Eilish.
UMG’s music publishing arm generated $549.15 million, up 2.2% year-over-year. Excluding a one-time adjustment from the prior year, publishing revenue saw a solid 14.7% increase. Digital publishing revenue rose 0.7%, while synchronization revenue climbed 18.5% due to high demand in advertising campaigns.
Revenue from merchandising and other activities increased by 3.5% to $260.3 million, bolstered by strong direct-to-consumer sales and increased tour merchandise, despite a decline in retail sales.
UMG’s EBITDA surged 17.8% year-over-year, reaching $610.65 million. Adjusted EBITDA, which excludes non-cash expenses, rose 8.2% to $682 million, with an improved adjusted EBITDA margin of 21.6%.
CEO Sir Lucian Grainge highlighted UMG’s progress in its “Artist-Centric” strategy, aimed at evolving the streaming model and enhancing opportunities for artists, songwriters, and shareholders. CFO Boyd Muir also underscored UMG’s commitment to maximizing long-term value, crediting the company’s diverse revenue streams as a foundation for sustained growth.
