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Universal Music Group (UMG) has announced its second-quarter revenue results, showcasing impressive growth in various sectors of the music industry.
The company’s overall revenue grew 4.5% in constant currency to 2.98 billion euros ($3.38 billion), exceeding expectations and outperforming in several areas. Despite the drop in physical revenue and a decline in merchandising revenue, UMG saw significant gains in subscription and publishing segments.
UMG attributed the growth in recorded music segment revenue to a 3.9% increase, rising to 2.22 billion euros ($2.5 billion). Subscription revenue, which includes streaming and other digital services, increased by an impressive 8.5% (1.1% as reported) to reach 1.2 billion euros ($1.36 billion).
The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a key measure of profitability, grew 7.3% in constant currency and 4.2% as reported, reaching 676 million euros ($766 million). Adjusted EBITDA margin rose to 22.7%, surpassing its prior year’s result.
Universal Music Group CEO Boyd Muir expressed satisfaction with the strong growth seen in subscription, ad-supported revenue, and music publishing revenue, noting that these increases more than offset difficult comparisons in physical and merchandising revenue.
Source: www.billboard.com
