MBW’s Stats of the Week is a series in which we highlight a data point worthy of the global music industry’s attention. This week’s statistics are powered by music data analytics company Chartmetric.
It’s a big day for Universal Music Group-related news.
This morning (May 2), Universal Music Group and TikTok, the social video platform owned by ByteDance, issued a joint statement confirming that they have signed a new agreement that includes “increased compensation” for Universal Music Group’s artists and songwriters .
The news ends a licensing dispute that has been ongoing between the two companies since late January, meaning generic The catalog of songs and recordings will return to TikTok within the next two weeks.
Chairman/CEO, Universal Music Group, Sir Lucian Grange An internal memo sent to Universal employees this morning and obtained by MBW confirmed that TikTok will offer “greater compensation” to UMG artists and songwriters through the new deal.
The news comes just hours before Universal Music Group releases another important update, the company’s first-quarter 2024 financial results.
Key statistics from UMG’s first-quarter results (three months to end-March): The company’s revenue was Euro€2.594 billion (USD 2.816 billion) Covers all its sectors (including recorded music, publishing, etc.).
Revenue figures rose in first quarter 7.9% Year-on-year In constant currency terms, it was “driven by solid growth across all sectors,” according to UMG.
recorded music
Universal’s total recorded music revenue (including streaming media and physical music, etc.) in the first quarter of 2024 is €1.989 billion (US$2.159 billion), up Annual growth of 5.6% Calculated at fixed exchange rates (see below).
In recorded music, UMG’s “subscription and streaming revenue” (including ad-supported and subscription streaming revenue) grew 12% annual increase Calculated at fixed exchange rate €1.466 billion ($1.59 billion).
A further decline in UMG recorded music streaming figures suggests the company subscription Streaming revenue rises in particular 12.5%Year-on-year Calculated at fixed exchange rate 1.123 billion euros($1.219 billion).
Meanwhile, UMG said Universal’s ad-supported recorded music streaming revenue rose 10.3% year-over-year on a constant currency basis to €343 million ($372.42 million) “as the advertising industry continues to recover.”
Physical revenue declines in Universal Music Group’s music business Annual increase of 14.4%Calculated at fixed exchange rate 255 million euros ($276.87 million), “mainly due to very difficult year-on-year comparisons, especially in Japan,” UMG said on Thursday (May 2).
Elsewhere in Universal Music Group’s recorded music division, “licensing and other revenue” fell Annual growth of 0.4%Calculated at fixed exchange rate 222 million euros ($241.04 million), “due to a time-related decline in synchronized revenue,” according to UMG.
This season’s best-selling products include Taylor Swift, Noah Kahan, Morgan Wallen, Ariana Grande and Olivia Rodrigoand the best-selling albums in the same period last year included King & Prince, Morgan Wallen, Taylor Swift, TOMORROW X TOGETHER and back issues.
music publishing
Elsewhere, Universal Pictures’ music publishing arm, Universal Music Publishing Groupthe revenue generated is €496 million Q1 ($538.55 million), up Annual increase of 18.4% Calculated at a fixed exchange rate.
In music publishing, digital revenue reached 284 million euros ($308.36 million), up Annual increase of 24.6% On a constant currency basis, UMG said it was driven by “continued growth in streaming and subscription revenue.”
Simultaneous revenue decline Annual growth of 7.5% Calculated at fixed exchange rate €62 million (US$67.31 million) “Due to timing reasons,” according to the company’s filing.
Meanwhile, machinery revenue grewAnnual increase of 8.7% Calculated in reporting currency and fixed currency €25 million ($27.15 million), While performance income increases Annual increase of 28.1% €114 million at constant exchange rates ($123.78 million), “partly due to higher social payments in the United States and higher-than-expected live events in Europe.”
Merchandising and other
Merchandise and other revenue in the first quarter of 2024 will reach 114 million euros ($123.78 million), increase Annual growth of 7.5% Calculated at a fixed exchange rate.
According to UMG, the growth was driven by “increased travel merchandise sales, partially offset by lower direct-to-consumer and retail sales due to difficulties in comparison.”
Interest, tax, depreciation and amortization advance profit, etc.
Q1 2024, UMG Interest, tax, depreciation and amortization advance profit (earnings before interest, taxes, depreciation) growth Annual growth of 95.2% Calculated at fixed exchange rate 490 million euros ($532 million).
What is the EBITDA margin? 18.9%compared to 10.6% Season 1, 2023.
Adjusted EBITDA in the first quarter was €591 million (US$641.7 million), an increase from the same period last year Annual growth of 15.9% Calculated at a fixed exchange rate.
Adjusted EBITDA margin expanded 1.5 percentage points to 22.8% in the first quarter of 2024, compared with 21.3% in the first quarter of 2023.
“UMG’s continued success is due in large part to the fact that we always put artists at the center of everything we do, surrounded by the most experienced team in the industry and our broad-based and strategically integrated portfolio of businesses. to support them,” said UMG Chairman and CEO. Executive Sir Lucian Grange.
Photo Interview/Alami
“Our strategic plan has once again delivered a strong start to the year, which is reflected in our results and the strong performance of our artists around the world.”
Sir Lucian Grange
He added: “Our strategic plan has once again delivered a strong start to the year, which is reflected in our results and the strong performance of our artists around the world.”
“We are encouraged by the trajectory of the business and the execution of our plans this year and in the coming years.”
Boyd Muir, UMG
Boyd Muir, UMG’s executive vice president, chief financial officer and president of operations, said: “2024 is off to a strong start with revenue growth across all segments, strong adjusted EBITDA growth and margin expansion.
“We are encouraged by the trajectory of the business and the execution of our plans this year and in the coming years.”
All EURUSD exchange rates in this report for the first quarter of 2024 are based on the average current quarterly exchange rate determined by the European Central Bank.global music business
Chartmetric is an all-in-one platform for artists and music industry professionals, providing everyone with comprehensive streaming, social, and audience data to help them build successful careers in music.global music business
