Universal Music Group N.V. Reports Financial Results for the Fourth Quarter and Full Year Ended December 31, 2024
Universal Music Group (UNVGY) reported strong Q4 2024 financial results with revenue reaching €3,439 million, up 7.2% year-over-year. Key financial highlights include:
- Q4 Adjusted EBITDA of €799 million, increasing 18.0% year-over-year
- Full-year 2024 revenue of €11,834 million, up 6.5%
- Full-year Adjusted EBITDA of €2,661 million, rising 12.3%
- Net profit grew 65.7% to €2,086 million in 2024
Business performance showed strength across segments:
- Recorded Music subscription revenue grew 7.9% in Q4
- Top artists included Taylor Swift, Sabrina Carpenter, and Billie Eilish
- Company dominated global charts with 9 of top 10 IFPI Global Artists
The company proposed a final dividend of €512 million (€0.28 per share), bringing total 2024 dividend to €951 million (€0.52 per share), subject to shareholder approval.
Universal Music Group (UNVGY) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con ricavi che hanno raggiunto i €3.439 milioni, in aumento del 7,2% rispetto all'anno precedente. Punti salienti finanziari includono:
- EBITDA rettificato del Q4 di €799 milioni, in crescita del 18,0% anno su anno
- Ricavi totali per l'anno 2024 di €11.834 milioni, in aumento del 6,5%
- EBITDA rettificato annuale di €2.661 milioni, in aumento del 12,3%
- L'utile netto è cresciuto del 65,7% raggiungendo i €2.086 milioni nel 2024
Le performance aziendali hanno mostrato forza in tutti i settori:
- I ricavi da abbonamenti alla musica registrata sono aumentati del 7,9% nel Q4
- Gli artisti di punta includevano Taylor Swift, Sabrina Carpenter e Billie Eilish
- L'azienda ha dominato le classifiche globali con 9 dei primi 10 artisti globali IFPI
L'azienda ha proposto un dividendo finale di €512 milioni (€0,28 per azione), portando il dividendo totale per il 2024 a €951 milioni (€0,52 per azione), soggetto all'approvazione degli azionisti.
Universal Music Group (UNVGY) reportó resultados financieros sólidos para el cuarto trimestre de 2024, con ingresos que alcanzaron los €3,439 millones, un aumento del 7.2% en comparación con el año anterior. Puntos destacados financieros incluyen:
- EBITDA ajustado del Q4 de €799 millones, aumentando un 18.0% año tras año
- Ingresos totales para el año 2024 de €11,834 millones, un aumento del 6.5%
- EBITDA ajustado anual de €2,661 millones, aumentando un 12.3%
- La utilidad neta creció un 65.7% a €2,086 millones en 2024
El desempeño empresarial mostró fortaleza en todos los segmentos:
- Los ingresos por suscripción de música grabada crecieron un 7.9% en el Q4
- Los artistas destacados incluyeron a Taylor Swift, Sabrina Carpenter y Billie Eilish
- La compañía dominó las listas globales con 9 de los 10 principales artistas globales de IFPI
La compañía propuso un dividendo final de €512 millones (€0.28 por acción), llevando el dividendo total de 2024 a €951 millones (€0.52 por acción), sujeto a la aprobación de los accionistas.
유니버설 뮤직 그룹 (UNVGY)는 2024년 4분기 재무 결과가 강력하다고 보고했으며, 수익은 €3,439백만에 도달하여 전년 대비 7.2% 증가했습니다. 주요 재무 하이라이트는 다음과 같습니다:
- 4분기 조정 EBITDA는 €799백만으로, 전년 대비 18.0% 증가
- 2024년 전체 수익은 €11,834백만으로, 6.5% 증가
- 연간 조정 EBITDA는 €2,661백만으로, 12.3% 증가
- 순이익은 2024년에 €2,086백만으로 65.7% 증가했습니다
사업 성과는 모든 부문에서 강력함을 보였습니다:
- 4분기 녹음 음악 구독 수익은 7.9% 증가
- 주요 아티스트로는 테일러 스위프트, 사브리나 카펜터, 빌리 아일리시가 포함되었습니다
- 이 회사는 IFPI 글로벌 아티스트 10명 중 9명의 차트를 지배했습니다
회사는 최종 배당금으로 €512백만(주당 €0.28)을 제안했으며, 2024년 총 배당금은 €951백만(주당 €0.52)으로 주주 승인에 따라 달라질 수 있습니다.
Universal Music Group (UNVGY) a annoncé des résultats financiers solides pour le quatrième trimestre 2024, avec des revenus atteignant €3,439 millions, en hausse de 7,2 % par rapport à l'année précédente. Points forts financiers incluent :
- EBITDA ajusté du Q4 de €799 millions, en augmentation de 18,0 % d'une année sur l'autre
- Revenus totaux pour l'année 2024 de €11,834 millions, en hausse de 6,5 %
- EBITDA ajusté annuel de €2,661 millions, en hausse de 12,3 %
- Le bénéfice net a augmenté de 65,7 % pour atteindre €2,086 millions en 2024
La performance commerciale a montré de la force dans tous les segments :
- Les revenus d'abonnement à la musique enregistrée ont augmenté de 7,9 % au Q4
- Les artistes de premier plan comprenaient Taylor Swift, Sabrina Carpenter et Billie Eilish
- L'entreprise a dominé les charts mondiaux avec 9 des 10 meilleurs artistes mondiaux IFPI
L'entreprise a proposé un dividende final de €512 millions (€0,28 par action), portant le dividende total pour 2024 à €951 millions (€0,52 par action), sous réserve de l'approbation des actionnaires.
Universal Music Group (UNVGY) berichtete über starke Finanzresultate im vierten Quartal 2024, mit Einnahmen von €3.439 Millionen, was einem Anstieg von 7,2% im Vergleich zum Vorjahr entspricht. Wichtige finanzielle Höhepunkte umfassen:
- Bereinigtes EBITDA im Q4 von €799 Millionen, was einem Anstieg von 18,0% im Jahresvergleich entspricht
- Gesamtjahresumsatz 2024 von €11.834 Millionen, ein Anstieg von 6,5%
- Bereinigtes EBITDA für das gesamte Jahr von €2.661 Millionen, was einem Anstieg von 12,3% entspricht
- Der Nettogewinn stieg 2024 um 65,7% auf €2.086 Millionen
Die Unternehmensleistung zeigte in allen Segmenten Stärke:
- Die Einnahmen aus Abonnements für aufgezeichnete Musik wuchsen im Q4 um 7,9%
- Zu den Top-Künstlern gehörten Taylor Swift, Sabrina Carpenter und Billie Eilish
- Das Unternehmen dominierte die globalen Charts mit 9 der 10 besten IFPI Global Artists
Das Unternehmen schlug eine endgültige Dividende von €512 Millionen (€0,28 pro Aktie) vor, wodurch die Gesamtdividende für 2024 auf €951 Millionen (€0,52 pro Aktie) steigt, vorbehaltlich der Genehmigung durch die Aktionäre.
- Net profit surged 65.7% to €2,086 million in 2024
- Q4 Adjusted EBITDA margin expanded 2.1pp to 23.2%
- Recorded Music subscription revenue grew 7.9% in Q4
- Dominated global charts with 9 of top 10 IFPI Global Artists
- Proposed dividend of €951 million for 2024
- Q4 streaming revenue declined 5.1% year-over-year
- Net cash from operating activities fell 7.6% to €2,104 million
- Free cash flow decreased to €523 million from €1,082 million
- Net debt increased to €2,098 million from €1,689 million
Summary Q4 2024 Results1
- Revenue of
€3,439 million increased7.2% year-over-year, or7.9% in constant currency, driven by growth across all segments. Excluding items impacting comparability detailed below, revenue grew6.1% in constant currency. - Recorded Music subscription revenue grew
7.9% year-over-year, or9.0% in constant currency, while streaming revenue declined5.1% year-over-year, or4.1% in constant currency. Excluding an item impacting comparability, subscription revenue grew7.2% in constant currency. - Adjusted EBITDA of
€799 million increased18.0% year-over-year, or19.1% in constant currency, and Adjusted EBITDA margin increased 2.1 percentage points to23.2% . Excluding items impacting comparability, Adjusted EBITDA grew10.5% year-over-year in constant currency, and Adjusted EBITDA margin expanded 0.8 percentage points to22.4% . - Top sellers included Taylor Swift, Sabrina Carpenter, Billie Eilish, Chappell Roan and Wicked: The Soundtrack.
Summary FY 2024 Results1
- Revenue of
€11,834 million increased6.5% year-over-year, or7.6% in constant currency, driven by growth across all segments. - Recorded Music subscription revenue grew
8.2% year-over-year, or9.1% in constant currency and streaming revenue declined0.8% year-over-year, but grew0.1% in constant currency. - Adjusted EBITDA of
€2,661 million increased12.3% year-over-year, or13.8% in constant currency, and Adjusted EBITDA margin expanded 1.2 percentage points to22.5% . - Net cash provided by operating activities before income tax paid of
€2,104 million decreased7.6% compared to€2,278 million in 2023. - Subject to shareholder approval, final dividend proposal of
€512 million , or€0.28 per share, which would bring total dividend for 2024 to€951 million , or€0.52 per share.
1 | This press release includes certain alternative performance indicators which are not defined in the IFRS Accounting Standards ("IFRS") issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release. |
2024 Business Highlights
- Global artist success, including: 9 of the Top 10 on the IFPI Global Artist Chart; the two biggest artist breakthroughs in the world in Sabrina Carpenter and Chappell Roan; 6 of the Top 10 global artists on Spotify; and 6 of the Top 10 most-streamed songs globally on Apple Music.
- Introduction of Streaming 2.0: represents a new era of innovation, consumer segmentation, geographic expansion, greater consumer value and ARPU growth for subscription music.
- Progress on strategy to accelerate investment in high-growth music markets and local repertoire, including investments in: Mavin Global (
Nigeria ), RS Group (Thailand ) and Outdustry (China /India ), among others. - Continued focus on growing artist and label-services business: Acquired the remaining share of [PIAS] two years after taking an initial stake in the company, announced an agreement to acquire Downtown Music Holdings and added a number of important artist and label partnerships around the world.
- Furthered Responsible AI initiatives: Strategic collaborations with KLAY Vision Inc., SoundLabs, and ProRata.ai, with additional ones in process; published the Principles for Music Creation with AI with Roland Corporation. Continued to drive innovation through responsible use of AI on the last Beatles track, "Now and Then", and in the Spanish language adaptation of Brenda Lee's iconic "Rockin' Around the Christmas Tree".
HILVERSUM,
"2024 was a year distinguished by the exceptional performance of our artists and songwriters and significant progress on our strategic initiatives," said Sir Lucian Grainge, UMG's Chairman and CEO. "Our industry-leading investment in talent continued to produce spectacular results, both from global superstars, as well as developing artists from around the world. We continue to create value for both our artists and shareholders by advancing our artist-centric strategy, ushering the next evolution of streaming—'Streaming 2.0,' and advancing a responsible and effective approach to AI."
Boyd Muir, COO and CFO of UMG, said, "Our artist investment has translated into continued strong financial performance in 2024, with healthy growth on both the top and bottom line. We continue to strategically reinvest in the business, while returning cash to our shareholders through meaningful dividends, and are well positioned to meet the growth targets laid out at our recent Capital Markets Day."
UMG Results
Three Months Ended | % | % | Year ended | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Revenue | 3,439 | 3,208 | 7.2 % | 7.9 % | 11,834 | 11,108 | 6.5 % | 7.6 % | |
EBITDA | 706 | 564 | 25.2 % | 26.3 % | 2,332 | 1,808 | 29.0 % | 31.3 % | |
EBITDA margin | 20.5 % | 17.6 % | 2.9pp | 19.7 % | 16.3 % | 3.4pp | |||
Adjusted EBITDA | 799 | 677 | 18.0 % | 19.1 % | 2,661 | 2,369 | 12.3 % | 13.8 % | |
Adjusted EBITDA margin | 23.2 % | 21.1 % | 2.1pp | 22.5 % | 21.3 % | 1.2pp | |||
Operating Profit | 1,775 | 1,418 | 25.2 % | 28.0 % | |||||
Net profit attributable to equity holders of the parent | 2,086 | 1,259 | 65.7 % | ||||||
Adjusted Net Profit1 | 1,782 | 1,626 | 9.6 % | ||||||
Net Debt | 2,098 | 1,689 | 24.2 % | ||||||
Net cash provided by operating activities before income tax paid | 2,104 | 2,278 | (7.6 %) | ||||||
Free Cash Flow | 523 | 1,082 | (51.7 %) | ||||||
Weighted Average Number of Shares Outstanding | 1,827 | 1,819 | |||||||
EPS - basic | 1.14 | 0.69 | |||||||
EPS - diluted | 1.13 | 0.68 | |||||||
Adjusted EPS - basic1 | 0.98 | 0.89 | |||||||
Adjusted EPS - diluted1 | 0.96 | 0.88 |
1 | Following a change in the definition, the FY23 Adjusted Net Profit has been restated to exclude the impacts of restructuring expenses and related tax impacts. |
Note: | % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. Constant currency is calculated by taking current year results and comparing against prior year results restated at current year rates. |
Q4 2024 Results
Revenue for the fourth quarter of 2024 was
As detailed in the section "Items Impacting Comparability of Results" below, Q4 2024 revenue included the benefit of DSP Catch-Up Income and Legal Settlements. Excluding these items, revenue grew
EBITDA grew
As detailed below, Q4 2024 EBITDA and Adjusted EBITDA included the benefit of DSP Catch-Up Income and Legal Settlements while Q4 2023 EBITDA and Adjusted EBITDA included the negative impact of a previously disclosed Legal Provision. Excluding these items, Adjusted EBITDA grew
FY 2024 Results
Revenue for 2024 of
As detailed below, 2024 revenue included the benefit of Legal Settlements, while 2023 revenue included the benefit of the Copyright Royalty Board Phonorecords III Accrual. Excluding these items from both years, full year revenue grew
Cost of revenues, consisting of artist and product costs, increased by
EBITDA of
As detailed below, 2024 EBITDA and Adjusted EBITDA included the benefit of Legal Settlements, while 2023 EBITDA and Adjusted EBITDA included the benefit of the Copyright Royalty Board Phonorecords III Accrual and the negative impact of a Legal Provision. Excluding these items from both years, Adjusted EBITDA grew
Operating profit increased by
Net profit attributable to equity holders of the parent grew
Net debt, defined as total debt minus cash and cash equivalents, at the end of 2024 was
Net cash provided by operating activities before income tax paid declined by
Cash paid for catalogue acquisitions increased to
In accordance with UMG's dividend policy to pay a dividend of
Recorded Music
Three Months Ended | % | % | Year ended | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Subscriptions and streaming revenue | 1,602 | 1,532 | 4.6 % | 5.6 % | 6,038 | 5,700 | 5.9 % | 6.8 % | |
of which streaming | 375 | 395 | (5.1 %) | (4.1 %) | 1,414 | 1,425 | (0.8 %) | 0.1 % | |
of which subscription | 1,227 | 1,137 | 7.9 % | 9.0 % | 4,624 | 4,275 | 8.2 % | 9.1 % | |
Downloads and other digital revenue | 44 | 32 | 37.5 % | 37.5 % | 180 | 207 | (13.0 %) | (11.8 %) | |
Physical revenue | 458 | 447 | 2.5 % | 3.4 % | 1,358 | 1,380 | (1.6 %) | 1.1 % | |
License and other revenue | 462 | 410 | 12.7 % | 12.4 % | 1,325 | 1,174 | 12.9 % | 13.5 % | |
Recorded Music Revenues | 2,566 | 2,421 | 6.0 % | 6.8 % | 8,901 | 8,461 | 5.2 % | 6.4 % | |
EBITDA | 2,073 | 1,618 | 28.1 % | 30.5 % | |||||
EBITDA margin | 23.3 % | 19.1 % | 4.2pp | ||||||
Adjusted EBITDA | 2,275 | 2,042 | 11.4 % | 12.9 % | |||||
Adjusted EBITDA margin | 25.6 % | 24.1 % | 1.5pp |
Note: | % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. |
Q4 2024
Recorded Music revenue for the fourth quarter of 2024 was
Subscription revenue grew
FY 2024
Recorded Music revenue in 2024 was
Subscription revenue grew
Recorded Music EBITDA in 2024 was
As detailed below, EBITDA and Adjusted EBITDA reflect the benefit of Legal Settlements in 2024, and the negative impact of a Legal Provision in 2023. Excluding these items, Adjusted EBITDA grew
Music Publishing
Three Months Ended | % | % | Year ended | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Performance revenue | 127 | 123 | 3.3 % | 4.1 % | 442 | 416 | 6.3 % | 7.3 % | |
Synchronisation revenue | 66 | 70 | (5.7 %) | (5.7 %) | 253 | 254 | (0.4 %) | 0.4 % | |
Digital revenue | 378 | 339 | 11.5 % | 12.2 % | 1,268 | 1,128 | 12.4 % | 12.9 % | |
Mechanical revenue | 24 | 31 | (22.6 %) | (22.6 %) | 103 | 108 | (4.6 %) | (4.6 %) | |
Other revenue | 18 | 13 | 38.5 % | 38.5 % | 55 | 50 | 10.0 % | 10.0 % | |
Music Publishing Revenues | 613 | 576 | 6.4 % | 7.0 % | 2,121 | 1,956 | 8.4 % | 9.0 % | |
EBITDA | 486 | 420 | 15.7 % | 16.3 % | |||||
EBITDA margin | 22.9 % | 21.5 % | 1.4pp | ||||||
Adjusted EBITDA | 511 | 470 | 8.7 % | 9.2 % | |||||
Adjusted EBITDA margin | 24.1 % | 24.0 % | 0.1pp |
Note: | % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. |
Q4 2024
Music Publishing revenue in the fourth quarter of 2024 was
FY 2024
Music Publishing revenue was
Music Publishing EBITDA in 2024 was
Merchandising and Other
Three Months Ended | % | % | Year ended | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Merchandising and Other Revenues | 264 | 215 | 22.8 % | 23.4 % | 842 | 706 | 19.3 % | 19.3 % | |
EBITDA | 42 | 43 | (2.3 %) | (2.3 %) | |||||
EBITDA margin | 5.0 % | 6.1 % | (1.1pp) | ||||||
Adjusted EBITDA | 43 | 47 | (8.5 %) | (6.5 %) | |||||
Adjusted EBITDA margin | 5.1 % | 6.7 % | (1.6pp) |
Note: | % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. |
Q4 2024
Merchandising and Other revenue in the fourth quarter of 2024 was
FY 2024
Merchandising and Other revenue grew to
Merchandising and Other EBITDA in 2024 was
Items Impacting Comparability of Results
TOTAL UMG | ||||||||||
FY24 | FY23 | |||||||||
(in millions of euros) | Q1 24 | Q2 24 | Q3 24 | Q4 24 | FY24 Total | Q1 23 | Q2 23 | Q3 23 | Q4 23 | FY23 Total |
Revenue | ||||||||||
CRB Phonorecords III Accrual | - | - | - | - | - | - | - | 53 | - | 53 |
DSP Catch-Up Income | - | - | - | 20 | - | - | - | - | - | - |
Legal Settlements | - | - | - | 40 | 40 | - | - | - | - | - |
Adjusted EBITDA | ||||||||||
CRB Phonorecords III Accrual | - | - | - | - | - | - | - | 11 | - | 11 |
Legal Provision | - | - | - | - | - | - | - | - | (15) | (15) |
DSP Catch-Up Income | - | - | - | 12 | - | - | - | - | - | - |
Legal Settlements | - | - | - | 29 | 29 | - | - | - | - | - |
Recorded Music | ||||||||||
FY24 | FY23 | |||||||||
(in millions of euros) | Q1 24 | Q2 24 | Q3 24 | Q4 24 | FY24 Total | Q1 23 | Q2 23 | Q3 23 | Q4 23 | FY23 Total |
Revenue | ||||||||||
DSP Catch-Up Income | - | - | - | 20 | - | - | - | - | - | - |
Legal Settlements | - | - | - | 32 | 32 | - | - | - | - | - |
Adjusted EBITDA | ||||||||||
Legal Provision | - | - | - | - | - | - | - | - | (15) | (15) |
DSP Catch-Up Income | - | - | - | 12 | - | - | - | - | - | - |
Legal Settlements | - | - | - | 27 | 27 | - | - | - | - | - |
Music Publishing | ||||||||||
FY24 | FY23 | |||||||||
(in millions of euros) | Q1 24 | Q2 24 | Q3 24 | Q4 24 | FY24 Total | Q1 23 | Q2 23 | Q3 23 | Q4 23 | FY23 Total |
Revenue | ||||||||||
CRB Phonorecords III Accrual | - | - | - | - | - | - | - | 53 | - | 53 |
Legal Settlements | - | - | - | 8 | 8 | - | - | - | - | - |
Adjusted EBITDA | ||||||||||
CRB Phonorecords III Accrual | - | - | - | - | - | - | - | 11 | - | 11 |
Legal Settlements | - | - | - | 2 | 2 | - | - | - | - | - |
CRB Phonorecords III Accrual
Revenue, EBITDA and Adjusted EBITDA in 2023 included the accrual for a catch-up payment from certain DSPs related to the Copyright Royalty Board Phonorecords III ruling in 2023 disclosed and booked in Q3 2023.
Legal Provision
EBITDA and Adjusted EBITDA in Q4 2023 were negatively impacted by a provision reflected in relation to a decades-old, ongoing artist estate litigation in
DSP Catch-Up Income
Revenue, EBITDA and Adjusted EBITDA in Q4 2024 included income from a DSP that was only able to be recognised in Q4 but related to Q2 and Q3 2024 activity. This revenue impacted comparability for Q4 2024, but not for FY 2024.
Legal Settlements
Revenue, EBITDA and Adjusted EBITDA in 2024 benefitted from 1) the settlement of a copyright infringement lawsuit booked in Q4 2024 and 2) a settlement associated with an exit in Q4 2024 by UMG from a JV partnership.
Conference Call Details
The Company will host a conference call to discuss these results on Thursday, March 6, 2025 at 6:15PM CET. A link to the live audio webcast will be available on investors.universalmusic.com and a link to the replay will be available after the call.
While listeners may use the webcast, a dial-in telephone number is required for investors and analysts to ask questions. Investors and analysts interested in asking questions can pre-register for a dial-in line at investors.universalmusic.com under the "Financial Reports" tab.
Cautionary Notice
This press release is published by Universal Music Group N.V. and contains inside information within the meaning of article 7 (1) of Regulation (EU) No 596/2014 (Market Abuse Regulation).
Forward-looking statements
This press release may contain statements that constitute forward-looking statements with respect to UMG's financial condition, results of operations, business, strategy and plans. Such forward-looking statements may be identified by the use of words such as 'profit forecast', 'expect', 'estimate', 'project', 'anticipate', 'should', 'intend', 'plan', 'probability', 'risk', 'target', 'goal', 'objective', 'will', 'endeavour', 'optimistic', 'prospects' and similar expressions or variations on such expressions. Although UMG believes that such forward-looking statements are based on reasonable assumptions, they are not guarantees of future performance. Actual results may differ materially from such forward-looking statements as a result of a number of risks and uncertainties, many of which are related to factors that are outside UMG's control, including, but not limited to, UMG's inability to compete successfully and to identify, attract, sign and retain successful recording artists and songwriters, failure of streaming and subscription adoption or revenue to grow or to grow less rapidly than anticipated, UMG's reliance on digital service providers, UMG's inability to execute its business strategy, the global nature of UMG's operations, changes in global economic and financial conditions, UMG's inability to protect its intellectual property and against piracy, challenges related to generative AI, UMG's inability to attract and retain key personnel, UMG's restructuring and reorganization activities, UMG's acquisitions and other investments, changes in laws and regulations (and UMG's compliance therewith) and the other risks that are described in our 2023 Annual Report and that will be described in our 2024 Annual Report. Accordingly, UMG cautions readers against placing undue reliance on such forward-looking statements. Such forward-looking statements are made as of the date of this press release. UMG disclaims any intention or obligation to provide, update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
Alternative Performance Indicators
This press release includes certain alternative performance indicators which are not defined in IFRS Accounting Standards issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release.
About Universal Music Group
At Universal Music Group (EURONEXT: UMG), we exist to shape culture through the power of artistry. UMG is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising and audiovisual content. Featuring the most comprehensive catalogue of recordings and songs across every musical genre, UMG identifies and develops artists and produces and distributes the most critically acclaimed and commercially successful music in the world. Committed to artistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. For more information on Universal Music Group N.V. visit www.universalmusic.com.
Contacts
Media
James Murtagh-Hopkins - communicationsnl@umusic.com
Investors
Erika Begun - investorrelations@umusic.com
Upcoming Calendar
2024 Annual Report: March 27, 2025
Appendix
The Consolidated financial statements have been prepared in accordance with IFRS Accounting Standards issued by the International Accounting Standards Board as endorsed by the EU and comply with the statutory provisions of Part 9, Book 2 of the Dutch Civil Code.
The financial information included in this press release is unaudited. The 2024 financial information included in this press release contains only part of the 2024 financial statements which will be included in the 2024 Annual Report and which still must be adopted by the shareholders at the upcoming Annual General Meeting of Shareholders. The 2024 Annual Report has not yet been published and an auditors' opinion has not yet been issued.
Condensed Consolidated Financial Statements | ||
Unaudited Consolidated Statement of Profit and Loss | ||
Year ended December 31, | ||
(in millions of euros) | 2024 | 2023 |
(unaudited) | (unaudited) | |
Revenues | 11,834 | 11,108 |
Cost of revenues | (6,746) | (6,208) |
Selling, general and administrative expenses | (3,015) | (3,213) |
Amortisation and impairment losses on intangible assets | (298) | (269) |
Operating profit | 1,775 | 1,418 |
Financial income | 1,279 | 454 |
Financial expenses | (187) | (151) |
1,092 | 303 | |
Income/(loss) from equity affiliates | 4 | - |
Profit before income taxes | 2,871 | 1,721 |
Income taxes | (778) | (458) |
Net profit | 2,093 | 1,263 |
Of which: | ||
Net profit attributable to equity holders of the parent | 2,086 | 1,259 |
Net profit attributable to non-controlling interests | 7 | 4 |
Earnings per share (in euros) | ||
Earnings for the period attributable to equity holders of the parent - basic | 1.14 | 0.69 |
Earnings for the period attributable to equity holders of the parent - diluted | 1.13 | 0.68 |
Unaudited Consolidated Statement of Cash Flows | ||
Year ended December 31, | ||
(in millions of euros) | 2024 | 2023 |
(unaudited) | (unaudited) | |
Operating activities | ||
Operating profit | 1,775 | 1,418 |
Adjustments | 520 | 796 |
Royalty advances payments, net of recoupments | (186) | (100) |
Gross cash provided by/(used for) operating activities before income tax paid | 2,109 | 2,114 |
Other changes in net working capital | (5) | 164 |
Net cash provided by/(used for) operating activities before income tax paid | 2,104 | 2,278 |
Income tax paid | (349) | (393) |
Net cash provided by/(used for) operating activities | 1,755 | 1,885 |
Investing activities | ||
Catalogue investments | (266) | (178) |
Other intangible assets investments | (92) | (74) |
Capital expenditures | (91) | (47) |
Purchases of consolidated companies, after acquired cash | (163) | (97) |
Investments in equity affiliates | (390) | (81) |
Purchase of financial assets | (145) | (154) |
Investments | (1,147) | (631) |
Proceeds from sales of property, plant, equipment and intangible assets | 2 | - |
Proceeds from sales of consolidated companies, after divested cash | - | 1 |
Proceeds from sale of financial assets | 79 | 1 |
Divestitures | 81 | 2 |
Dividends received from equity affiliates | 12 | 4 |
Dividends received from investments | 3 | 3 |
Net cash provided by/(used for) investing activities | (1,051) | (622) |
Financing activities | ||
Distributions to shareowners | (933) | (929) |
Dividends paid by consolidated companies to their non-controlling interests | (4) | (2) |
Transactions with shareowners | (937) | (931) |
Proceeds from borrowings | 4,321 | 6,647 |
Repayments of borrowings | (3,755) | (6,815) |
Interest, net | (81) | (77) |
Other cash items related to financing activities | 2 | (10) |
Transactions on borrowings and other financial liabilities | 487 | (255) |
Repayment of lease liabilities | (81) | (80) |
Payment of interest of lease liabilities | (21) | (14) |
Net cash provided by/(used for) financing activities | (552) | (1,280) |
Net change in cash and cash equivalents | 152 | (17) |
Foreign currency translation adjustments | 6 | (34) |
Change in cash and cash equivalents | 158 | (51) |
Cash and cash equivalents | ||
At beginning of the period | 387 | 438 |
At end of the period | 545 | 387 |
Cost of Revenues | ||
Year ended | ||
(in millions of euros) | 2024 | 2023 |
(unaudited) | (unaudited) | |
Artist costs | 5,464 | 5,152 |
Product costs | 1,282 | 1,056 |
Cost of Revenues | 6,746 | 6,208 |
Non-IFRS Alternative Performance Indicators and Reconciliations | ||
Financial Net Debt | ||
Year ended | ||
(in millions of euros) | 2024 | 2023 |
(unaudited) | (unaudited) | |
Cash and cash equivalents | 553 | 413 |
Derivative financial assets | - | 2 |
Drawn revolving credit facilities | - | - |
Bank overdrafts | (8) | (26) |
Bonds | (1,810) | (1,808) |
Commercial papers | (746) | (197) |
Other | (87) | (73) |
Borrowings at amortized cost | (2,651) | (2,104) |
Financial Net Debt | (2,098) | (1,689) |
Reconciliation of Operating Profit to EBITDA and Adjusted EBITDA | ||
Year ended | ||
(millions of euros) | 2024 | 2023 |
(unaudited) | (unaudited) | |
Operating Profit | 1,775 | 1,418 |
Adjustments | ||
Amortization and depreciation expense | 409 | 382 |
Restructuring expenses | 169 | 41 |
(Gain)/loss on sale of assets | (23) | (26) |
Impairment on intangible assets | 2 | (7) |
EBITDA | 2,332 | 1,808 |
Non-cash share-based compensation expense | 329 | 561 |
Adjusted EBITDA | 2,661 | 2,369 |
Reconciliation of net profit attributable to equity holders of the parent to Adjusted net profit | ||
Year ended, | ||
(in millions of euros) | 2024 | 2023 |
(unaudited) | (unaudited) | |
Net profit attributable to equity holders of the parent | 2,086 | 1,259 |
Financial income and expenses, excluding interest and income from investments | (1,177) | (377) |
Non-cash share-based compensation expense | 329 | 561 |
Restructuring expense | 169 | 41 |
Impairment of intangible assets | 2 | (7) |
Amortization of catalogues | 245 | 236 |
Income tax on adjustments | 128 | (87) |
Adjusted Net Profit1 | 1,782 | 1,626 |
1 | Following a change in the definition, the FY23 Adjusted Net Profit has been restated to exclude the impacts of restructuring expenses and related tax impacts. |
Reconciliation of net cash provided by/(used for) operating activities to Free Cash Flow | ||
Year ended December 31, | ||
(in millions of euros) | 2024 | 2023 |
(unaudited) | (unaudited) | |
Net cash provided by/(used for) operating activities before income tax paid | 2,104 | 2,278 |
Income tax paid | (349) | (393) |
Net cash provided by/(used for) operating activities | 1,755 | 1,885 |
Net cash provided by/(used for) investing activities | (1,051) | (622) |
Repayment of lease liabilities and related interest expenses | (102) | (94) |
Interest, net | (81) | (77) |
Other cash items related to financing activities | 2 | (10) |
Free Cash Flow | 523 | 1,082 |
Net cash provided by/(used for) operating activities – Adjustments | ||
Operating profit includes certain non-cash items that are adjusted to get to Net cash provided by operating activities as follows: | ||
Year ended, | ||
(in millions of euros) | 2024 | 2023 |
(unaudited) | (unaudited) | |
Amortization and depreciation expense | 409 | 382 |
Non-cash share-based compensation expense, net of employees tax withheld | 131 | 429 |
Impairment of intangible assets | 2 | (7) |
Changes in provisions, net | 1 | 18 |
(Gain)/loss on sale of assets | (23) | (26) |
Adjustments | 520 | 796 |
Average currency rates | ||||
Three Months Ended | Year ended | |||
2024 | 2023 | 2024 | 2023 | |
EUR vs. | ||||
USD | 0.92 | 0.93 | 0.92 | 0.92 |
GBP | 1.20 | 1.15 | 1.18 | 1.15 |
JPY | 6.17 | 6.27 | 6.10 | 6.64 |
Definitions
In this press release, UMG presents certain financial measures when discussing UMG's performance that are not measures of financial performance or liquidity under IFRS ("non-IFRS"). These non-IFRS measures (also known as alternative performance indicators) are presented because management considers them important supplemental measures of UMG's performance and believes that they are widely used in the industry in which UMG operates as a means of evaluating a company's operating performance and liquidity. UMG believes that an understanding of its sales performance, profitability, financial strength and funding requirements is enhanced by reporting the following non-IFRS measures. All non-IFRS measures should be considered in addition to, and not as a substitute for, other IFRS measures of operating and financial performance as presented in UMG's Consolidated Financial Statements and the related Notes, or as described in this press release. In addition, it should be noted that other companies may have definitions and calculations for these non-IFRS measures that differ from those used by UMG, thereby affecting comparability.
EBITDA and EBITDA margin
UMG considers EBITDA and EBITDA margin, non-IFRS measures, to be relevant measures to assess its operating performance and the performance of its operating segments as reported in the segment data. It enables UMG to compare the operating performance of operating segments regardless of whether their performance is driven by the operating segment's organic growth or by acquisitions. It excludes restructuring expenses, which may impact period-to-period comparability. EBITDA margin is EBITDA divided by revenue.
To calculate EBITDA, the accounting impact of the following items is excluded from the Operating Profit:
- amortization of intangible assets;
- impairment on goodwill and other intangibles;
- depreciation of tangible assets including right of use assets;
- (gains)/losses on the sale of tangible assets, including right of use assets and intangible assets; and
- restructuring expenses.
Adjusted EBITDA and Adjusted EBITDA margin
The difference between EBITDA and Adjusted EBITDA consists of non-cash share-based compensation expenses and certain one-time items when applicable, that are deemed by management to be significant and incidental to normal business activity. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue.
UMG considers Adjusted EBITDA and Adjusted EBITDA margin, non-IFRS measures, to be relevant measures to assess performance of its operating activities excluding items that may be incidental to normal business activity and excluding non-cash share based compensation which may impact period-to-period comparability.
Adjusted Net Profit/Adjusted Net Profit per share
UMG's use of Adjusted net profit is appropriate as UMG uses it as the basis for the Adjusted net profit per share (in EUR) – diluted, both of which are non-IFRS measures. Adjusted net profit may be subject to limitations as an analytical tool for investors, as it excludes certain items and therefore does not reflect the expense associated with such items, which may be significant and have a significant effect on UMG's net profit. During 2024, UMG updated the definition of Adjusted net profit to exclude restructuring expenses which may impact period-to-period comparability.
The accounting impact of the following items are excluded from Net profit attributable to equity holders of the parent:
- amortisation of catalogues;
- impairment losses on goodwill and intangible assets;
- financial income and expenses, excluding interest and income from investments;
- restructuring expenses;
- earnings from discontinued operations;
- non-cash share-based compensation expense;
- certain one-time items that are deemed by management to be significant and incidental to normal business activity;
- income tax impact on the above adjustments;
- non-recurring tax items; and
- adjustments attributable to non-controlling interests.
Financial Net Debt
UMG considers Financial Net Debt, a non-IFRS measure, to be a relevant indicator of its liquidity and capital resources. UMG management uses this indicator for reporting, management and planning purposes. Financial Net Debt is calculated as the sum of:
- cash and cash equivalents, as reported in the Consolidated Statement of Financial Position, including (i) cash in banks and deposits, whether or not compensated, corresponding to cash, and (ii) money market funds;
- cash management financial assets, included in the Consolidated Statement of Financial Position under "financial assets", relating to financial investments, which do not satisfy the criteria for classification as cash equivalents set forth in IAS 7; and
- derivative financial instruments, net (assets and liabilities) where the underlying instruments are Financial Net Debt items, as well as cash deposits securing borrowings included in the Consolidated Statement of Financial Position under "financial assets";
less:
- the value of borrowings at amortized cost as reported in the Consolidated Statement of Financial Position
Free Cash Flow
UMG defines Free Cash Flow as net cash provided by/(used for) operating activities plus net cash provided by/(used for) investing activities, less repayment of lease liabilities, interest paid, net and other cash items related to financing activities. UMG considers Free Cash Flow, a non-IFRS measure, to be a relevant indicator of its cash flow generated to fund dividend payments and repayment of debt. Free Cash Flow is not a measure of performance calculated in accordance with IFRS and therefore it should not be considered in isolation of, or as a substitute for cash flow provided by operating activities as a measure of liquidity. Free Cash Flow, as we calculate it, may not be comparable to similarly titled measures employed by other companies. In addition, Free Cash Flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs.
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SOURCE Universal Music Group N.V.