Universal Music Group N.V. (“UMG” or “the Company”) today announced its financial results for the first quarter ended March 31, 2024.
“UMG’s continuing success is in large measure attributable to the fact that we always put artists at the center of everything we do and surround them with the industry’s most experienced teams and our broad-based and strategically integrated portfolio of businesses.” said UMG’s Chairman and CEO Sir Lucian Grainge. “Our strategic plan is once again driving a strong start to the year, reflected in our results, as well as the exceptional performance of our artists around the world.”
Boyd Muir, UMG’s EVP, CFO and President of Operations said, “2024 is off to a healthy start, with revenue growth in all segments as well as strong Adjusted EBITDA growth and margin expansion. We remain encouraged by the trajectory of the business and with the execution of our plans for this year and the years ahead.”
Q1 2024 Results
Revenue for the first quarter of 2024 was €2,594 million, an increase of 5.8% year-over-year, or 7.9% in constant currency, driven by healthy growth in all segments.
Recorded Music Q1 2024
Recorded Music revenue for the first quarter of 2024 was €1,989 million, up 3.4% compared to the first quarter of 2023, or 5.6% in constant currency. Subscription revenue grew 10.7% year-over-year, or 12.5% in constant currency, driven by the growth in global subscribers as well as the continued benefit of price increases at certain platforms. Streaming revenue grew 8.9% year-over-year, or 10.3% in constant currency, as the advertising industry continued to recover. Physical revenue decreased by 18.5% year-over-year, or 14.4% in constant currency, largely due to a very difficult year-over-year comparison, particularly in Japan. Downloads and other digital revenue declined 16.4% year-over-year, or 13.2% in constant currency, as download sales continued their industry-wide decline. License and other revenue declined 1.8% year-over-year, or 0.4% in constant currency, due to a timing-related decline in synchronization revenue. Top sellers for the quarter included releases from Taylor Swift, Noah Kahan, Morgan Wallen, Ariana Grande and Olivia Rodrigo, while top sellers in the prior-year quarter included releases from King & Prince, Morgan Wallen, Taylor Swift, TOMORROW X TOGETHER and back number.
Music Publishing Q1 2024
Music Publishing revenue for the first quarter of 2024 was €496 million, up 16.7% year-over-year, or 18.4% in constant currency. Digital revenue grew 22.9% year-over-year, or 24.6% in constant currency, driven by continued growth in streaming and subscription revenue. Performance revenue increased 26.7% year-over-year, or 28.1% in constant currency, due in part to higher society payments in the US, as well as greater than anticipated live activity in Europe. Synchronization revenue declined 10.1% year-over-year, or 7.5% in constant currency, as a result of timing. Mechanical revenue grew by 8.7% in both reported and constant currency.
Merchandising and Other Q1 2024
Merchandising and Other revenue in the first quarter of 2024 was €114 million, an increase of 6.5% year-over-year, or 7.5% in constant currency, driven by increased touring merchandise sales, partly offset by a decrease in direct-to-consumer and retail sales due to a difficult comparison.
