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 announced its financial performance for the three months to the end of September.
Key data on third-quarter results of the world’s largest music rights company: UMG The revenue generated is €2.870 billion ($3.15 billion) All departments (including recorded music, publishing, etc.) this season.
Revenue figures rose in the third quarter Annual increase of 4.9% Calculated at a fixed exchange rate.
UMG’s recorded music, music publishing and sales and other segments all contributed to revenue growth in the quarter.
Other highlights from UMG Season 3 include Annual increase of 8.2% The company’s subscription streaming revenue has grown significantly.
Commenting on UMG’s latest quarterly results, UMG Chairman and CEO Sir Lucian Grainge said: “While our revenue and Adjusted EBITDA continue to grow, we have made progress on the strategic initiatives outlined at our recent Capital Markets Day.”
Photo credit: Austin Hargrave
“We are laying the foundation for a new wave of streaming growth and new opportunities for UMG and its artists, songwriters and shareholders.”
Sir Lucian Grange
He added: “We will continue to drive our artist-centric strategy, which is a key pillar of our efforts to develop a streaming-based business model or what we call ‘Streaming 2.0’.
“Through these initiatives, we are laying the foundation for a new wave of streaming growth and bringing new opportunities to UMG, its artists, songwriters and shareholders.”
UMG noted on Thursday (October 31) that as previously disclosed, its revenue in the third quarter of last year (2023) include a 53 million euros The music publishing industry benefits from the accrual of additional payments by certain digital service providers in connection with the 2023 ruling by the Copyright Royalty Board Phonorecords III (the “CRB Phonorecords III Accrual”).
Excluding this item, revenue grew 7% annual increase Calculated at a fixed exchange rate.
recorded music
Universal’s total recorded music revenue was Q3 2024 (Including streaming media plus entities, etc.) is 2.146 billion euros ($2.356 billion) up Annual growth of 6.2% Calculated at a fixed exchange rate. (see below).
In recorded music, UMG’s “subscription and streaming revenue” (including ad-supported and subscription streaming revenue) grew Annual growth of 6.2%Calculated at fixed exchange rate €1.491 billion (US$1.637 billion) In the third season.
Detailed analysis of Universal Music Group’s third-quarter recorded music streaming data further shows that the company subscription Streaming revenue rises in particular Annual increase of 8.2% Calculated at fixed exchange rate €1.137 billion (US$1.248 billion) UMG said this growth was driven “mainly by the growth of global users and rising prices on some platforms.”
At the same time, Universal Pictures’ Advertising supported Recorded music streaming revenue increases Annual growth of 0.3% Calculated at fixed exchange rate €354 million ($388.8 million) UMG said the third-quarter decline was due to “mixed performance from ad-based platform partners as the digital advertising market remains volatile.”
Physical revenue declines in Universal Music Group’s music business Annual growth of 0.7% According to UMG, sales were 288 million euros ($316.31 million) at constant exchange rates “as growth in vinyl sales largely offset difficult comparisons with last year’s strong CD sales in Japan”.
UMG’s best-selling products this season include Taylor Swift, Sabrina Carpenter, Billie Eilish, Chappelle Rowan and Post Malonewhile last season’s bestsellers included Taylor Swift, SEVENTEEN, Morgan Wallen, Olivia Rodrigo and King & Prince.
music publishing
Meanwhile, Universal Music Publishing Group, the publishing arm of Universal Music, had revenue of €500 million ($549.15 million) Q3 2024, Annual growth of 2.2% Calculated at fixed exchange rates (see below).
UMG once again points to its music publishing revenue Third quarter of 2023 (previous year) This includes earnings of €53 million CRB Phonorecords III Accruals Excluding this item, music publishing revenue increases Annual increase of 14.7% In constant currency terms.
In music publishing, digital revenue grows Annual growth of 0.7% Calculated at fixed exchange rate 295 million euros ($324 million).
Performance income drops Annual increase of 3.8% UMG said on Thursday it was 101 million euros ($111 million) at constant exchange rates “due to lower collections in parts of Europe.”
Simultaneous revenue increase Annual increase of 18.5% Calculated at fixed exchange rate €64 million (US$70.3 million), UMG said this was “driven by growth in advertising activity in the US and Europe”.
Increase in machinery revenue 12% annual increase This figure will increase to €28 million ($30.75 million) on a reported basis and at constant exchange rates due to improved physical sales.
merchandising
Universal Pictures’ “merchandise and other” revenue for the third quarter of 2024 will reach €237 million ($260.3 million)increased Annual growth of 3.5%constant UMG said it was “driven by growth in direct-to-consumer sales and increased travel merchandise sales, partially offset by lower retail sales.”
Interest, tax, depreciation and amortization advance profit, etc.
Q3 2024, UMG Interest, tax, depreciation and amortization advance profit (Earnings before interest, taxes, depreciation) increased Annual increase of 17.8% Calculated at a fixed exchange rate, 556 million euros ($610.65 million).
EBITDA margin is 19.4%compared to 17.4% Season 3 in 2023 (see below).
UMG said EBITDA and EBITDA margin were affected by non-cash stock-based salary expenses of €65 million in the third quarter of 2024, compared with €103 million in the third quarter of 2023.
Excluding non-cash share-based compensation charges, adjusted EBITDA for the quarter was €621 million (US$682 million), an increase from the same period last year Annual increase of 8.2% Calculated at a fixed exchange rate.
Adjusted EBITDA margin improved to 21.6% Q3 2024, compared to 21.1% Season 3, 2023.
“Our focus remains on maximizing the long-term value of our business,” said Boyd Muir, UMG’s executive vice president, chief financial officer and president of operations.
“The diversity of our revenue not only delivered attractive revenue and Adjusted EBITDA growth for Universal Music Group this quarter, but also positions the company for strong continued growth in the years to come.”
Universal Music Group also announced today that Muir has been promoted to chief operating officer.
The company said today it was “immediately initiating an executive search process” to hire a new chief financial officer.
Muir will serve as chief operating officer and chief financial officer until a new chief financial officer is appointed.
All references to year-over-year percentages in this report, whether explicitly stated or not, are calculated at constant exchange rates. All EUR/USD conversions in this report are based on average exchange rates for the period determined by the European Central Bank
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