UMG Reports Financial Results for the First Quarter Ended March 31, 2026.

April 30, 2026

Q1 2026 Results Highlights

Revenue of €2,900 million was flat year-over-year, while it grew 8.1% in constant currency, with the consolidation of Downtown Music Holdings (“Downtown”), initial pricing benefits of Streaming 2.0 agreements, strong physical sales and healthy synchronization income contributing to growth in Recorded Music and Music Publishing.
Recorded Music subscription revenue grew 4.1% year-over-year, or 12.5% in constant currency, benefitting from the consolidation of Downtown, as well as from initial pricing benefits of Streaming 2.0 agreements.
Adjusted EBITDA of €636 million declined 3.8% year-over-year, and increased 3.9% in constant currency driven by revenue growth, while Adjusted EBITDA margin decreased 0.9pp to 21.9%, primarily due to the consolidation of Downtown.
Top sellers included BTS, Olivia Dean, Taylor Swift, the KPop Demon Hunters soundtrack and Morgan Wallen.
Closing of Downtown acquisition provides UMG with capabilities and infrastructure to deliver further growth in the fast-growing label and artist services sector.

Sir Lucian Grainge, Chairman and Chief Executive Officer of UMG, said, “We delivered a solid quarter of growth in our core businesses, complemented by our strategic development and investment in fast-growing areas of the industry. We continue to build the most successful music company in history by attracting the world’s top talent, engaging fans globally, and delivering long-term value for stakeholders. Central to that mission is fostering an environment that protects artists and songwriters, champions human creativity, and embraces innovation at a pivotal moment for our industry.”

Matt Ellis, UMG’s CFO, said, “Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future. In addition, the important steps we are announcing today to increase our share buyback authorization and monetize a portion of our equity stake in Spotify will lead to enhanced shareholder value while maintaining the flexibility the Company requires to drive further success.”

Q1 2026 Results

Revenue for the first quarter of 2026 grew 8.1% in constant currency, with the consolidation of Downtown as of February 20, 2026. Excluding Downtown, revenue grew 4.9% in constant currency with improvement in Recorded Music and Music Publishing due to:

Initial pricing benefits of Streaming 2.0 agreements;
Strong physical sales; and
Healthy synchronization income.

Adjusted EBITDA grew 3.9% in constant currency. Excluding Downtown, Adjusted EBITDA grew 3.4% in constant currency and Adjusted EBITDA margin declined 0.3pp year-over-year due to:

Improvement in Music Publishing margin and flat Recorded Music margin;
An increase in corporate overhead, largely associated with strategic technology initiatives; and
Lower margins in Merchandising.

Recorded Music

Q1 2026

Recorded Music revenue grew 8.9% in constant currency, and grew 5.4% in constant currency excluding Downtown:

Subscription revenue grew 12.5% in constant currency, and grew 7.9% in constant currency excluding Downtown. Wholesale price increases contributed 3pp to the growth rate, partially offset by a 2pp negative impact from a light release schedule which led to lower market share against strong market share in the prior-year quarter.
Streaming revenue increased 5.0% in constant currency, and grew 1.2% in constant currency excluding Downtown, as consumers continue to shift consumption from better monetized video platforms to short-form platforms.
Downloads and other digital revenue declined 5.6% in constant currency, and declined 11.1% in constant currency excluding Downtown, due to continued industry-wide format shift.
Physical revenue increased 12.7% in constant currency, both with and excluding Downtown, with particular strength in Japan and the U.S.
License and other revenue decreased 3.6% in constant currency, and declined 5.1% in constant currency excluding Downtown, as underlying licensing revenue growth from strong synchronization revenue was more than offset by meaningful, non-recurring live income in the first quarter of 2025.

Recorded Music Adjusted EBITDA was up 6.0% in constant currency, and grew 5.3% in constant currency excluding Downtown, while Adjusted EBITDA margin was flat excluding Downtown, reflecting:

Operating leverage driven by Streaming 2.0 price increases;
A negative impact of repertoire mix.

Music Publishing

Q1 2026

Music Publishing revenue grew 7.0% in constant currency, and grew 4.3% in constant currency excluding Downtown:

Performance revenue increased 6.5% in constant currency, and grew 5.6% in constant currency excluding Downtown.
Synchronization revenue increased 15.3% in constant currency, and grew 13.6% in constant currency excluding Downtown driven by stronger advertising, trailers and motion picture income.
Digital revenue grew 4.8% in constant currency, and grew 1.3% in constant currency excluding Downtown, with a difficult comparison against strong digital growth in the prior-year quarter.
Mechanical revenue grew 12.0% in constant currency, with and without Downtown, partially due to physical strength in Japan.

Music Publishing Adjusted EBITDA increased 11.6% in constant currency, and grew 12.4% in constant currency excluding Downtown. Excluding Downtown, Music Publishing Adjusted EBITDA margin grew 1.9pp as a result of:

Favorable revenue mix;
Partially offset by higher legal fees related to copyright enforcement.

Merchandising and Other

Q1 2026

Music Publishing revenue grew 7.0% in constant currency, and grew 4.3% in constant currency excluding Downtown:

Performance revenue increased 6.5% in constant currency, and grew 5.6% in constant currency excluding Downtown.
Synchronization revenue increased 15.3% in constant currency, and grew 13.6% in constant currency excluding Downtown driven by stronger advertising, trailers and motion picture income.
Digital revenue grew 4.8% in constant currency, and grew 1.3% in constant currency excluding Downtown, with a difficult comparison against strong digital growth in the prior-year quarter.
Mechanical revenue grew 12.0% in constant currency, with and without Downtown, partially due to physical strength in Japan.

Favorable revenue mix;
Partially offset by higher legal fees related to copyright enforcement.

Update on Capital Allocation and Management Initiatives

As a company operating in a fast-evolving sector, UMG and its Board of Directors (the “Board”) continuously assess the Company’s business and financial strategy. Today, the Company can update shareholders on certain capital allocation and management initiatives that the Board and management have been considering since 2025:

• – Share buyback: The Board considers UMG’s share price to be undervalued relative to its business performance and prospects, and has accordingly increased the size of its share buyback authorization to €1 billion. When the Company completes the €500 million share buyback program announced on March 30, 2026, it intends to initiate another share buyback program for the incremental €500 million authorization, subject to market conditions and the shareholders approving a new share buyback authorization at UMG’s 2026 Annual General Meeting of Shareholders (AGM). The Company intends to use the repurchased shares to meet its obligations under the 2022 Universal Music Group Global Equity Plan, and subplans thereof (“the equity plan”), and/or to reduce the share capital of the Company. Dependent on factors including market conditions, the Board may further increase the buyback authorization in subsequent periods.
• – Monetization of Spotify stake: Given the importance of capital discipline, the expected returns from buying back UMG’s shares, and the Company’s confidence in the the long-term growth of the ecosystem, in March 2026 the Board authorized the monetization of half of the Company’s equity stake in Spotify. Consistent with the Company’s approach to artist compensation, artists will share in the proceeds. UMG’s share will initially be directed towards its buyback program