Michael Buckner, Variety
Universal Music Group, the world's largest music company, reported continued strong performance in the second quarter of 2024, with revenue increasing 8.7% year over year and 9.6% excluding the impact of currency fluctuations to $3.2 billion.
According to the report, recorded music revenues increased 5.8% year over year, or 6.8% at constant exchange rates, music publishing increased 10.1% year over year, or 10.4% at constant exchange rates, and merchandising increased 44.6% year over year, or 43.7% at constant exchange rates. Best-selling recorded music artists include Taylor Swift, Billie Eilish, Seventeen and Morgan Wallen.
Recorded music subscription revenues increased 6.5% YoY (+6.9% actual) while streaming revenues were down 4.2% YoY (-3.9% actual), while physical revenues increased 9.5% YoY (+14.4% actual) and licensing and other revenues increased 18.0% YoY on both a reported and actual basis. This report follows a tough first quarter in which UMG was in an uphill battle over royalties with social media platform TikTok and made major job cuts.
Other highlights, according to the announcement, include:
Revenues of €5,526 million, up 7.3% year-on-year and 8.8% in constant currency, driven by growth in all segments
• Recorded music revenues increased 4.7% year over year, up 6.3% at constant exchange rates; music publishing revenues increased 13.4% year over year, up 14.3% at constant exchange rates; merchandising revenues increased 29.2% year over year, up 29.7% at constant exchange rates.
• Recorded music subscription revenue increased 8.5% year-on-year, up 9.6% at constant currencies, streaming revenue increased 1.8% year-on-year, up 2.5% at constant currencies, while physical revenue decreased 4.2% year-on-year, up 0.3% at constant currencies and licensing and other revenue increased 9.3% year-on-year, up 10.2% at constant currencies
— Adjusted EBITDA was €1.24 billion, up 11.5% year-on-year and 13.4% at constant currency, while adjusted EBITDA margin expanded by 0.8 percentage points to 22.4%.
Earnings per share of €0.50 compared to €0.34 in H1 2023; adjusted earnings per share of €0.44 compared to €0.42 in H1 2023
• Interim dividend of €439 million, or €0.24 per share
“Our continued strong revenue growth this quarter demonstrates our deliberate operation as a multi-faceted music entertainment company that puts artists at the center of everything we do,” said Lucian Grainge, chairman and CEO of UMG. “Our unique, innovative and constantly evolving organizational structure enables us to support recording artists and songwriters with ever-expanding revenue streams, bolstered by the exciting next phase of development of new products and streaming services.”
“Our diversified revenue streams across both emerging and organic businesses enabled us to deliver high single-digit revenue growth and double-digit adjusted EBITDA growth this quarter,” said Boyd Muir, EVP, CFO and head of operations at UMG. “We continue to invest in growth in line with our long-term strategic plan.”