It was a tense day for financial news from public companies.
This morning (April 29), the South Korean entertainment giant Hybe and Spotify, the largest music streaming platform in the world, announced their Q1 results.
Now it is time for Universal Music Group, the world’s largest music rights company.
According to the results from Q1 UMG (for the three months leading up to the end of March), released on Tuesday (April 29), the company generated revenue of €2.901 billion ($3.052 billion) across all divisions, including recorded music, publishing, and more.
This income in 19.5% year in constant currency, according to UMG, is attributed to robust growth in music and publishing sectors.
Streaming and Recorded Music Growth
Another significant highlight from UMG’s Q1 results is the revenue from streaming, which grew 9.3% dominance in constant currency, amounting to €1.252 billion($1.317 billion) in the first quarter.
Photo: Austin Hargrave
“Our strong results – and our confidence in the future reflect the implementation of our strategic plan, including the development and promotion of the most successful artists and songwriters in the world, connecting them with billions of fans in new and innovative ways.”
Sir Lucian Grainge
Commenting on the latest earnings announcement, UMG’s Chairman and CEO Sir Lucian Grainge stated: “Our strong results – and our confidence in the future reflect the fulfillment of our strategic plan, including the consistent development and promotion of the most successful artists and songwriters, connecting them with billions of fans in innovative ways.”
The total revenue from recorded music at Universal for Q1 2025 was €2.241 billion ($2.358 billion), an increase of 10.3% year in constant currency.
In the recorded music segment, UMG’s subscription and streaming revenue (including ad-supported and subscription income) increased 7.2% dominance in constant currency to €1.605 billion ($1.688 billion).
UMG reported that revenue from subscription streaming rose 9.3% dominance in constant currency, reaching €1.252 billion($1.317 billion), primarily driven by “growth in global subscribers.”
Meanwhile, advertising revenue from Universal’s streaming grew by 0.3% year in constant currency to €353 million ($371.46 million). According to UMG, this outcome reflects the “shift in consumption from well-monetized video platforms to short-form platforms that have yet to be monetized.”
In the recorded music segment, physical revenue rose 15.4% year in constant currency to €300 million ($315.69 million) due to an increase in vinyl sales in the U.S. and Europe.
Licenses and other revenue increased 29.8% year in constant currency to €296 million ($311.48 million). UMG attributed this to “particularly strong live revenues in certain markets, as well as growing synchronization income.”
The top sellers for the quarter included releases from Kendrick Lamar, Sabrina Carpenter, Lady Gaga, The Weeknd, and Mrs. Green Apple.
Music Publishing Performance
UMG’s Music Publishing Division, Universal Music Publishing Group, generated income of €555 million ($584.02 million) in the first quarter, an increase of 9.5% year in constant currency.
Digital income grew 16.9% year in constant currency, amounting to €339 million ($356.72 million). According to UMG, this growth is driven by increased streaming and subscription.
Work income, however, fell 1.7% year in constant currency to €114 million ($119.96 million), attributed to a difficult comparison with higher payments in the U.S. and stronger live activity in Europe during the previous quarter.
Meanwhile, synchronization income remained steady in constant currency at €64 million ($67.34 million). Mechanical income rose by 4% year in constant currency to €26 million ($27.35 million).
UMG’s merchandising and other revenue in Q1 2025 reached €112 million ($117.85 million), reflecting a decrease of 5.1% year in constant currency.
According to UMG, “the decline in merchandise sales was partially offset by strong growth in direct-to-consumer sales.”
EBITDA Insights
In Q1 2025, UMG reported an EBITDA (earnings before interest, taxes, depreciation, and amortization) of €603 million ($634.53 million), a rise of 21.6% year in constant currency.
EBITDA margin was 20.8%, up from 18.9% in Q1 2024.
The adjusted EBITDA for the quarter was €661 million ($695.57 million), increasing 10% year in constant currency.
The adjusted EBITDA margin remained consistent at 22.8%.
Commenting on the results, Boyd Muir, COO and CFO of UMG, added: “2025 begins on a strong note, with multifaceted revenue growth across recorded music and publishing, as well as robust adjusted EBITDA growth.
“Our focus on key strategic initiatives positions us to achieve our mid-term financial goals.”
All EUR-USD conversions are performed at the average exchange rate for the respective period, according to the European Central Bank.
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.
