Universal Music generated $3.15 billion in revenue in the second quarter, driven by top-selling musicians such as Taylor Swift, Billie Eilish, and SEVENTEEN
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.
Universal Music Group reported second-quarter and first-half financial results.
The top statistic from the world’s largest music rights company’s second-quarter results (the three months to the end of June): Universal Music Group (UMG) revenue was 2.932 billion euros Covers all its sectors (including recorded music, publishing, etc.).
UMG’s second quarter revenue figures translate to US$3.15 billion Calculated based on the quarterly average exchange rate published by the European Central Bank, Annual increase of 9.6% Calculated at a fixed exchange rate.
Commenting on the results, Sir Lucian Grainge, Chairman and Chief Executive Officer of UMG, said: “Our continued strong revenue growth during the quarter demonstrates that, by design, we are a diversified music entertainment company that puts our artists at the forefront of our The center of everything you do.
Photo credit: Sthanlee B. Mirador/Sipa USA/Alamy
“Our continued strong revenue growth during the quarter demonstrates that we are, by design, a diverse music entertainment company that puts our artists at the center of everything we do.”
Sir Lucian Grange
He added: “Our unique structure is both innovative and evolving, allowing us to support our recording artists and songwriters with ever-expanding revenue streams and through new products and exciting streaming services. Stage one development is enhanced.
Other highlights from UMG’s second quarter include Annual growth of 6.9% The company’s subscription streaming revenue surges Annual increase of 14.4% an increase in the corporate entity’s revenue, and Annual increase of 43.7% Growth of the “Merchandise & Others” revenue segment.
recorded music
Universal’s total recorded music revenue (including streaming media and physical music, etc.) in the second quarter of 2024 is 2.2 billion euros ($2.368 billion), up 6.8%Year-on-year Calculated at fixed exchange rates (see below).
In recorded music, UMG’s “subscription and streaming revenue” (including ad-supported and subscription streaming revenue) grew 4.1% compared with the same period last yearCalculated at fixed exchange rate €1.480 billion (US$1.593 billion).
Detailed analysis of UMG’s recorded music streaming data further demonstrates that the company’s subscription Streaming revenue growth Annual growth of 6.9% Calculated at fixed exchange rate 1.137 billion euros ($1.224 billion).
UMG said the growth was “primarily due to global user growth and the impact of certain price increases.”
Evidence of global user growth arrived yesterday. Spotify, the world’s largest subscription music streaming service, reported yesterday (July 23) that it has added 7 mega Premium subscriber numbers for the second quarter ended the quarter with a global premium subscriber base of 246 million Paying users.
At the same time, the price increases mentioned by UMG may also refer to price increases implemented by companies such as Spotify, which last July increased the price of its flagship subscription in multiple regions including the United States and the United Kingdom for the first time in its 15-year history. Less than a year later, it again raised subscription prices in key mature markets such as the United States and the United Kingdom.
Meanwhile, Universal’s ad-supported recorded music streaming revenue fell Annual growth of 3.9% Calculated at fixed exchange rate 343 million euros ($369.3 million), which, according to UMG, was due to “slower growth among primarily advertising-based platform partners and funding shortfalls related to deal renewal timing for certain platforms.”
Physical revenue surges in Universal Music Group’s music business Annual increase of 14.4% Calculated at fixed exchange rate €357 million ($384.38 million). Universal Music Group attributed the growth to “favorable release schedules driving vinyl sales in the U.S. and Europe” and said it “more than offset the difficulties compared to last year’s strong CD sales in Japan.”
Universal Music Group’s recorded music business sees ‘licensing and other’ revenue grow 18% annual increase Based on reporting currency and fixed currency. UMG reported that the growth was “due to improved synchronization revenue, higher live and audiovisual production revenue and an increase in direct-to-consumer related activities.”
This season’s best-selling products include Taylor Swift, Billie Eilish, SEVENTEEN, Morgan Wallen and Pooh! groupwhile the best-selling products during the same period last year included King & Prince, Morgan Wallen, SEVENTEEN, Taylor Swift and Stray Kids.
music publishing
Elsewhere, Universal Pictures’ music publishing arm, Universal Music Publishing Groupthe revenue generated is 511 million euros Second quarter ($550.19 million), up10.4%Year-on-year Calculated at fixed exchange rates (see below).
In music publishing, digital revenue reached €311 million ($334.85 million), up 17.4%Year-on-year On a constant currency basis, UMG said this was driven by “growth in streaming and subscription revenue and growth in transaction opportunities.”
Synchronized revenue growth Annual increase of 1.7% Year-over-year results in reporting currency and constant currency.
Meanwhile, machinery revenue fell Annual growth of 10.3% UMG said in Tuesday’s filing that it was “calculated at a constant exchange rate due to the industry’s continued shift to digital formats.”
Marketing and others
Merchandise sales and other revenue in the second quarter of 2024 will reach 227 million euros ($244.41 million),increased Annual increase of 43.7% Calculated at a fixed exchange rate.
UMG reported that the growth was driven by “growth in direct-to-consumer sales and increased touring merchandise sales due to strong touring activity during the period.”
Interest, tax, depreciation and amortization advance profit, etc.
Q2 2024, UMG Interest, tax, depreciation and amortization advance profit (earnings before interest, taxes, depreciation) growth Annual increase of 17.4%Calculated at fixed exchange rate 580 million euros ($624.48 million).
EBITDA margin is 19.8%compared to 18.7% Season 2, 2023.
UMG noted in the filing that EBITDA and EBITDA margin were impacted by non-cash stock-based salary expenses of €69 million in the second quarter of 2024, compared with €85 million in the second quarter of 2023.
Excluding those non-cash share-based compensation expenses, UMG’s Adjusted advance profit after interest, tax, depreciation and amortization The second season is €649 million ($698.77 million), up Annual increase of 11.3% Calculated at a fixed exchange rate.
At the same time, as can be seen from the table above, UMG’s adjusted EBITDA margin expanded by 0.2 percentage points to 22.1% Season 2 2024 with 21.9% Universal noted that “revenue growth and cost savings resulting from the previously announced strategic organizational redesign were partially offset by an unfavorable impact on the revenue mix resulting from an increase in the proportion of merchandise sales and physical sales.”
“We will continue to invest in the growth we are seeing as we execute on our long-term strategic plan.”
Boyd Muir, UMG
Boyd Muir, UMG executive vice president, chief financial officer and president of operations, added: “Our diverse revenue streams across emerging and mature businesses positioned us to once again achieve high-single-digit revenue growth and double-digit adjusted EBITDA growth during the quarter. .
“We will continue to invest in the growth we are seeing as we execute on our long-term strategic plan.”
All references to year-over-year percentages in this report, whether explicitly stated or not, are calculated at constant exchange rates. All EURUSD exchange rates for Q2 2024 in this report are based on the average current quarterly exchange rate determined by the European Central Bank.
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