The most recent financial results from Universal Music Group have been released.
Regarding UMG’s financial indicators for the 2024 fiscal year/calendar year, here’s a highlight: revenue from music subscriptions reached 4.624 billion euros, showing an increase of 9.1% year-over-year.
This corresponds to approximately 5.00 billion US dollars, according to average exchange rates for the year, as noted by the IRS.
For Q4 2024, just three months prior to the end of December, UMG’s revenue from streaming recorded music was up 9.0% year-over-year, totaling 1.227 billion euros (1.33 billion US dollars).
Challenges in Advertising Revenue
However, there was less encouraging news from the advertising-financed streaming sector.
UMG’s recorded music revenue from ad-supported streaming fell in Q4 by 4.1% year-over-year, bringing in 375 million euros ($408 million).
Across the entire year of 2024 (January-December), UMG’s income from advertising in recorded music remained relatively stable, with a slight increase of 0.1% year-over-year, totaling 1.414 billion euros (1.53 billion US dollars).
(All growth figures presented in this report reflect constant currency.)
In context, subscription streaming accounted for a substantial 77% of UMG’s total recorded music revenue in 2024, which reached 6.038 billion euros (6.53 billion US dollars).
Meanwhile, advertising-supported streaming comprised less than a quarter at 23% of this total.
UMG’s overall revenues for the 2024 fiscal year (across music, publishing, and more) reached €11.834 billion (12.81 billion US dollars), reflecting an increase of 7.6% year-over-year.
The adjusted EBITDA for the company stood at 2.661 billion euros ($2.88 billion), a growth of 13.8% year-over-year.
Revenue from recorded music for the twelve months up to December 2024 experienced an increase of 6.4% year-over-year, totaling 8.901 billion euros (9.63 billion US dollars).
Revenue from the company’s music publishing segment also rose for the period, reaching 2.121 billion euros ($2.30 billion), an increase of 9.0% year-over-year.
Photo: Austin Hargrave
“We continue to create value for both our artists and shareholders, promoting our artist-focused strategy, paving the way for the next evolution of streaming—’Streaming 2.0’—and advocating for a responsible and effective approach to AI.”
Sir Lucian Grange, UMG
“2024 was a remarkable year for our artists and songwriters, marked by significant advancements in our strategic initiatives,” stated Sir Lucian Grange, Chairman and CEO of UMG.
“Our investments in talent continue to yield impressive results from global superstars and emerging artists alike.”
“We persist in creating value for our artists and shareholders, advancing our artist-focused strategy, unveiling the next evolution of streaming—‘Streaming 2.0,’ and promoting a responsible and effective approach to AI.”
UMG reported that its leading global music sellers in 2024 included albums from Taylor Swift, alongside works from Billy Eilish, Sabrina Carpenter, Morgan Wallen, and Chappell Roan.
For a detailed view of Q4 numbers, see below:
Q4 Overview
In the last three months of 2024, UMG generated revenue of €3.439 billion ($3.74 billion) across all its divisions (including recorded music, publishing, and more). This figure represents a 7.9% year-over-year increase.
According to the Q4 fiscal report, excluding a 20 million euros “catch-up” payment with a DSP, as well as an additional 40 million euros in legal settlements, the total revenue for UMG in Q4 grew 6.1% year-over-year in constant currency.
UMG’s recorded music revenue in Q4 2024 showed an increase of 6.8% year-over-year, rising to €2.566 billion ($2.79 billion).
This figure was influenced by a one-time €20 million payment from a DSP.
Additionally, it benefited from €32 million attributed to two legal settlements related to: (I) a copyright violation case settled in Q4 2024, and (II) an agreement concerning UMG’s exit from a joint venture during the same quarter.
Excluding these legal settlements and DSP payments, UMG stated that its recorded music revenue grew by 4.6% year-over-year for the quarter.
The best-selling music in the 4th quarter included works from Taylor Swift, Sabrina Carpenter, Billy Eilish, Chappell Roan, and the soundtrack for ‘Evil.’
In the meantime, Universal’s Music Publishing division, Universal Music Publishing Group, reported revenue of 613 million euros ($666 million) in Q4, reflecting an increase of 7.0% year-over-year in constant currency.
An amount of 8 million euros from the aforementioned legal settlement was included in the publishing income for the quarter.
Excluding these legal revenues, UMG stated that income from the publishing segment grew by 5.6% year-over-year in this quarter, driven by the steady growth in subscription and streaming revenue, as well as improved productivity.
UMG’s other revenues in Q4 2024 amounted to 264 million euros ($287 million), up 23.4% year-over-year, attributed to growth in direct-to-consumer sales and merchandise.
Note: As previously mentioned, all conversions from Euro to USD in this report were made using average annual rates from the IRS. All quarterly conversions from EUR to USD were based on rates provided to analysts and UMG investors.
Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
