Sir Lucian Grange at UMG. Image courtesy.
Hilversum, the Netherlands (CelebrityAccess) — Universal Music Group has released financial results for the record giant’s fiscal second quarter, showing growth in both revenue and net profit.
According to UMG, the company reported total revenue of 2.932 billion euros, an increase of 8.7% year-on-year, driven by performance across all divisions of the brand group.
In the second quarter, recorded music revenue increased 5.8% year-on-year, or 6.8%, music subscription revenue increased 6.5% year-on-year, and streaming media revenue fell 4.2% year-on-year.
Physical products continued to be a growth area for UMG’s revenue profile, growing 9.5% year over year in constant currency terms, while licensing and other revenue grew 18.0% year over year.
UMG reported EBITDA of $649 million, up 11.3% for the quarter, with adjusted EBITDA rising slightly to 22.1% from 21.9% in the second quarter of 2023.
In the first half of 2024, UMG’s overall revenue was US$5.526 billion, a growth of 7.3%, and its adjusted net profit was US$809 million, a growth of 5.8% compared with the first half of 2023.
Sir Lucian Grainge, chairman and chief executive of UMG, said: “Our continued strong revenue growth this quarter demonstrates that we are, by design, a diversified music entertainment company that puts our artists at the forefront of everything we do. Center. Our unique innovative and evolving structure allows us to support our recording artists and songwriters with ever-expanding revenue streams, enhanced by the next phase of growth with new products and exciting streaming services.
Boyd Muir, UMG’s executive vice president, chief financial officer and president of operations, said: “Different revenue streams from emerging and mature businesses allowed us to once again achieve high-single-digit revenue growth and double-digit adjusted EBITDA growth this quarter.” As we plan for our long-term strategic plan, we will continue to invest in the growth we are seeing. “
