Universal Music Group N.V. (“UMG” or “the Company”) today announced its financial results for the first quarter ended March 31, 2025.

“Our strong results – and our confidence about the future – reflect the execution of our strategic plan, including consistently developing and breaking the world’s most successful artists and songwriters by connecting them with billions of fans in new and innovative ways,” said UMG’s Chairman and CEO Sir Lucian Grainge.

Boyd Muir, COO and CFO of UMG, said, “2025 is off to a strong start, with multi-faceted revenue growth in recorded music and music publishing as well as healthy Adjusted EBITDA growth. Our focus on our key strategic initiatives positions us to achieve our mid-term financial objectives.”

 

Q1 2025 Results Highlights

• Revenue of €2,901 million increased 11.8% year-over-year, or 9.5% in constant currency, driven by solid growth in Recorded Music and Music Publishing.
• Recorded Music subscription revenue grew 11.5% year-over-year, or 9.3% in constant currency, and streaming revenue grew 2.9% year-over-year, or 0.3% in constant currency.
• Adjusted EBITDA of €661 million increased 11.8% year-over-year, or 10.0% in constant currency, and Adjusted EBITDA margin remained consistent at 22.8%.
• Top sellers included Kendrick Lamar, Sabrina Carpenter, Lady Gaga, The Weeknd and Mrs. GREEN APPLE.

 

Q1 2025 Results

Revenue for the first quarter of 2025 was €2,901 million, an increase of 11.8% year-over-year, or 9.5% in constant currency, driven by healthy growth in Recorded Music and Music Publishing, as discussed further below. 

EBITDA for the quarter grew 23.1% year-over-year, or 21.6% in constant currency, to €603 million and EBITDA margin was 20.8%, compared to 18.9% in the first quarter of 2024. The margin improvement is a result of lower non-cash share-based compensation expenses of €58 million during the first quarter of 2025, compared to €101 million during the first quarter of 2024. Excluding non-cash share-based compensation expenses, Adjusted EBITDA for the quarter was €661 million, up 11.8% year-over-year, or 10.0% in constant currency, driven by revenue growth. Adjusted EBITDA margin was 22.8%, consistent with the first quarter of 2024, as the positive impact of operating leverage and cost savings related to our previously announced strategic realignment were offset by the negative impact of revenue and repertoire mix.

 

Recorded Music

Q1 2025

Recorded Music revenue for the first quarter of 2025 was €2,241 million, up 12.7% year-over-year, or 10.3% in constant currency. Subscription revenue grew 11.5% year-over-year, or 9.3% in constant currency, primarily driven by the growth in global subscribers. Streaming revenue grew 2.9% year-over-year, or 0.3% in constant currency, as consumption continues to shift from better monetized video platforms to short-form platforms, which are not yet as well monetized. Physical revenue increased by 17.6% year-over-year, or 15.4% in constant currency, driven by vinyl sales growth in the U.S. and Europe. Downloads and other digital revenue declined 13.0% year-over-year, or 14.9% in constant currency, as download sales continue their industry-wide decline. License and other revenue increased 33.3% year-over-year, or 29.8% in constant currency, driven by particularly strong live income in certain markets, as well as by growth in synchronisation income. Top sellers for the quarter included releases from Kendrick Lamar, Sabrina Carpenter, Lady Gaga, The Weeknd and Mrs. GREEN APPLE, while top sellers in the prior-year quarter included releases from Taylor Swift, Noah Kahan, Morgan Wallen, Ariana Grande and Olivia Rodrigo.

 

Music Publishing

Q1 2025

Music Publishing revenue for the first quarter of 2025 was €555 million, up 11.9% year-over-year, or 9.5% in constant currency. Digital revenue grew 19.4% year-over-year, or 16.9% in constant currency, driven by continued growth in streaming and subscription revenue. Performance revenue was flat year-over-year, but declined 1.7% in constant currency, with a difficult comparison against higher society payments in the U.S. and stronger live activity in Europe in the prior year quarter. Synchronization revenue increased 3.2% year-over-year, and was flat in constant currency. Mechanical revenue grew by 4.0% on both a reported and constant currency basis.

 

Merchandising and Other

Q1 2025

Merchandising and Other revenue in the first quarter of 2025 was €112 million, a decrease of 1.8% year-over-year, or 5.1% in constant currency, as timing-related declines in touring merchandise sales were partially offset by healthy growth in direct-to-consumer sales.