Universal Music Group N.V. Reports Financial Results for the Second Quarter and Half Year Ended June 30, 2024
Universal Music Group (UMG) reported its Q2 2024 and H1 2024 financial results. Q2 revenue was €2,932 million, an 8.7% increase year-over-year, driven by growth across all segments. Adjusted EBITDA increased by 10.0% to €649 million. Major revenue contributors included Taylor Swift, Billie Eilish, and SEVENTEEN.
H1 2024 revenue increased by 7.3% to €5,526 million. Key segments like Recorded Music grew by 4.7%, and Music Publishing by 13.4%. H1 Adjusted EBITDA rose by 11.5% to €1,240 million, with an EPS increase to €0.50 from €0.34 in H1 2023. An interim dividend of €0.24 per share was declared.
Despite these positive indicators, net debt increased to €2,612 million, and free cash flow showed a €460 million outflow. Streaming revenue showed a minor 4.2% decline in Q2, offset by gains in other categories.
Universal Music Group (UMG) ha riportato i risultati finanziari del Q2 2024 e del primo semestre del 2024. I ricavi del Q2 sono stati di €2.932 milioni, con un aumento dell'8,7% rispetto all'anno precedente, trainati dalla crescita in tutti i segmenti. L'EBITDA rettificato è aumentato del 10,0% a €649 milioni. I principali contributori ai ricavi hanno incluso Taylor Swift, Billie Eilish e SEVENTEEN.
I ricavi del primo semestre del 2024 sono aumentati del 7,3% a €5.526 milioni. Segmenti chiave come la Musica Registrata sono cresciuti del 4,7% e la Pubblicazione Musicale del 13,4%. L'EBITDA rettificato del primo semestre è aumentato dell'11,5% a €1.240 milioni, con un aumento dell'EPS a €0,50 rispetto a €0,34 nel primo semestre del 2023. È stato dichiarato un dividendo intermedio di €0,24 per azione.
Nonostante questi indicatori positivi, il debito netto è aumentato a €2.612 milioni, e il flusso di cassa libero ha mostrato una fuoriuscita di €460 milioni. I ricavi da streaming hanno mostrato una leggera diminuzione del 4,2% nel Q2, compensata dai guadagni in altre categorie.
Universal Music Group (UMG) informó sobre sus resultados financieros del segundo trimestre de 2024 y del primer semestre de 2024. Los ingresos del segundo trimestre fueron de €2,932 millones, un aumento del 8.7% en comparación con el año anterior, impulsado por el crecimiento en todos los segmentos. El EBITDA ajustado aumentó un 10.0% a €649 millones. Los principales contribuyentes a los ingresos incluyeron a Taylor Swift, Billie Eilish y SEVENTEEN.
Los ingresos del primer semestre de 2024 aumentaron un 7.3% a €5,526 millones. Segmentos clave como la Música Grabada crecieron un 4.7% y la Publicación Musical un 13.4%. El EBITDA ajustado del primer semestre subió un 11.5% a €1,240 millones, con un incremento en el EPS a €0.50 desde €0.34 en el primer semestre de 2023. Se declaró un dividendo interino de €0.24 por acción.
A pesar de estos indicadores positivos, la deuda neta aumentó a €2,612 millones, y el flujo de caja libre mostró una salida de €460 millones. Los ingresos por streaming mostraron una leve disminución del 4.2% en el segundo trimestre, compensada por las ganancias en otras categorías.
유니버설 뮤직 그룹(UMG)은 2024년 2분기 및 2024년 상반기 재무 결과를 발표했습니다. 2분기 수익은 29억 3200만 유로로, 전년 대비 8.7% 증가했으며 모든 부문에서 성장에 힘입었습니다. 조정 EBITDA는 10.0% 증가하여 6억 4900만 유로에 달했습니다. 주요 수익 기여자는 테일러 스위프트, 빌리 아일리시, SEVENTEEN이었습니다.
2024년 상반기 수익은 7.3% 증가하여 55억 2600만 유로에 이르렀습니다. 녹음 음악과 음악 출판과 같은 주요 부문은 각각 4.7% 및 13.4% 성장했습니다. 상반기에 조정된 EBITDA는 11.5% 증가하여 12억 4000만 유로에 달하며, EPS는 0.34에서 0.50으로 증가했습니다. 주당 0.24 유로의 중간 배당금이 선언되었습니다.
이러한 긍정적인 지표에도 불구하고 순부채는 26억 1200만 유로로 증가했으며, 자유 현금 흐름은 4억 6000만 유로의 유출을 보였습니다. 스트리밍 수익은 2분기에 4.2% 감소했지만, 다른 카테고리의 수익 증가로 상쇄되었습니다.
Universal Music Group (UMG) a annoncé ses résultats financiers pour le deuxième trimestre 2024 et le premier semestre 2024. Les revenus du deuxième trimestre se sont élevés à 2,932 millions d'euros, soit une augmentation de 8,7 % par rapport à l'année précédente, soutenue par la croissance dans tous les segments. L'EBITDA ajusté a augmenté de 10,0 % pour atteindre 649 millions d'euros. Les principaux contributeurs au chiffre d'affaires comprenaient Taylor Swift, Billie Eilish et SEVENTEEN.
Les recettes du premier semestre 2024 ont augmenté de 7,3 % pour atteindre 5,526 millions d'euros. Des segments clés tels que la Musique enregistrée ont connu une croissance de 4,7 %, et l'Édition musicale de 13,4 %. L'EBITDA ajusté du premier semestre a augmenté de 11,5 % pour atteindre 1,240 million d'euros, avec une hausse du BPA à 0,50 € contre 0,34 € au premier semestre 2023. Un dividende intérimaire de 0,24 € par action a été déclaré.
Malgré ces indicateurs positifs, la dette nette a augmenté à 2,612 millions d'euros, et le flux de trésorerie libre a affiché un flux sortant de 460 millions d'euros. Les revenus du streaming ont enregistré une légère baisse de 4,2 % au cours du deuxième trimestre, compensée par des gains dans d'autres catégories.
Universal Music Group (UMG) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 und das erste Halbjahr 2024 veröffentlicht. Im zweiten Quartal betrugen die Einnahmen 2,932 Millionen Euro, was einem Anstieg von 8,7% im Vergleich zum Vorjahr entspricht, angetrieben durch Wachstum in allen Segmenten. Das bereinigte EBITDA stieg um 10,0% auf 649 Millionen Euro. Zu den wichtigsten Umsatzträgern gehörten Taylor Swift, Billie Eilish und SEVENTEEN.
Die Einnahmen im ersten Halbjahr 2024 stiegen um 7,3% auf 5,526 Millionen Euro. Wichtige Segmente wie Recorded Music wuchsen um 4,7% und Music Publishing um 13,4%. Das bereinigte EBITDA für das erste Halbjahr stieg um 11,5% auf 1,240 Millionen Euro, mit einem Anstieg des EPS von 0,34 Euro auf 0,50 Euro im ersten Halbjahr 2023. Eine Zwischen Dividende von 0,24 Euro pro Aktie wurde erklärt.
Trotz dieser positiven Indikatoren stieg die Nettoverschuldung auf 2,612 Millionen Euro, und der freie Cashflow zeigte einen Abfluss von 460 Millionen Euro. Die Streaming-Einnahmen verzeichneten im zweiten Quartal einen kleinen Rückgang von 4,2%, was durch Gewinne in anderen Kategorien ausgeglichen wurde.
- Q2 revenue increased by 8.7% to €2,932 million.
- Adjusted EBITDA for Q2 rose by 10.0% to €649 million.
- H1 revenue increased by 7.3% to €5,526 million.
- H1 Adjusted EBITDA grew by 11.5% to €1,240 million.
- EPS for H1 increased to €0.50 from €0.34 in H1 2023.
- Interim dividend of €0.24 per share declared.
- Net debt increased to €2,612 million.
- Free cash flow showed a €460 million outflow.
- Streaming revenue in Q2 declined by 4.2%.
Q2 2024 Results Highlights1
- Revenue of
€2,932 million increased8.7% year-over-year, or9.6% in constant currency, driven by growth across all segments - Recorded Music revenue grew
5.8% year-over-year, or6.8% in constant currency, while Music Publishing grew10.1% year-over-year, or10.4% in constant currency and Merchandising grew44.6% year-over-year, or43.7% in constant currency - Recorded Music subscription revenue grew
6.5% year-over-year, or6.9% in constant currency and streaming revenue decreased4.2% year-over-year, or3.9% in constant currency, while physical revenue grew9.5% year-over-year, or14.4% in constant currency and license and other revenue grew18.0% year-over-year on both a reported and constant currency basis - Adjusted EBITDA of
€649 million increased10.0% year-over-year, or11.3% in constant currency, and Adjusted EBITDA margin expanded 0.2 percentage points to22.1% - Recorded Music top sellers included Taylor Swift, Billie Eilish, SEVENTEEN, Morgan Wallen and Ae! group
H1 2024 Results Highlights1
- Revenue of
€5,526 million increased7.3% year-over-year, or8.8% in constant currency, driven by growth across all segments - Recorded Music revenue grew
4.7% year-over-year, or6.3% in constant currency, while Music Publishing grew13.4% year-over-year, or14.3% in constant currency and Merchandising grew29.2% year-over-year, or29.7% in constant currency - Recorded Music subscription revenue grew
8.5% year-over-year, or9.6% in constant currency and streaming revenue grew1.8% year-over-year, or2.5% in constant currency, while physical revenue declined4.2% year-over-year, but grew0.3% in constant currency and license and other revenue grew9.3% year-over-year, or10.2% in constant currency - Adjusted EBITDA of
€1,240 million increased11.5% year-over-year, or13.4% in constant currency, and Adjusted EBITDA margin expanded 0.8 percentage points to22.4% - EPS of
€0.50 per share compared to€0.34 in the first half of 2023 and Adjusted EPS of€0.44 per share compared to€0.42 in the first half of 2023 - Interim dividend of
€439 million , or€0.24 per share
1 | This press release includes certain alternative performance indicators which are not defined in the International Financial Reporting 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 Interim Financial Review and Unaudited Condensed Consolidated Interim Financial Statements which is available on our website at investors.universalmusic.com/reports. |
HILVERSUM,
UMG´s Chairman and CEO Sir Lucian Grainge said, "Our continued strong revenue growth this quarter demonstrates that we are, by design, a multifaceted music entertainment company that places our artists at the center of everything we do. Our unique structure, which is both innovative and constantly evolving, enables us to support our recording artists and songwriters with an ever-expanding array of revenue sources, reinforced by new products and the exciting next phase of development of streaming services."
"Our varied revenue streams, across both emerging and established businesses, allowed us to once again achieve high-single digit revenue growth and double-digit Adjusted EBITDA growth this quarter" said Boyd Muir, UMG's EVP, CFO and President of Operations. "We continue to invest into the growth we see ahead of us as we execute against our long-term strategic plan."
UMG Results
Three Months Ended June 30, | % | % | Six Months Ended June 30, | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Revenue | 2,932 | 2,697 | 8.7 % | 9.6 % | 5,526 | 5,148 | 7.3 % | 8.8 % | |
EBITDA | 580 | 505 | 14.9 % | 17.4 % | 1,069 | 767 | 39.4 % | 43.5 % | |
EBITDA margin | 19.8 % | 18.7 % | 1.1pp | 19.3 % | 14.9 % | 4.4pp | |||
Adjusted EBITDA | 649 | 590 | 10.0 % | 11.3 % | 1,240 | 1,112 | 11.5 % | 13.4 % | |
Adjusted EBITDA margin | 22.1 % | 21.9 % | 0.2pp | 22.4 % | 21.6 % | 0.8pp | |||
Operating profit | 756 | 591 | 27.9 % | 32.4 % | |||||
Net profit attributable to equity holders of the parent | 914 | 625 | 46.2 % | 48.6 % | |||||
Adjusted net profit | 809 | 765 | 5.8 % | ||||||
Net cash provided by operating activities before income tax paid | 436 | 703 | (38.0 %) | ||||||
Free cash flow | (460) | (13) | |||||||
Weighted average number of shares outstanding | 1,825 | 1,817 | |||||||
EPS - basic | 0.50 | 0.34 | |||||||
EPS - diluted | 0.49 | 0.34 | |||||||
Adjusted EPS - basic | 0.44 | 0.42 | |||||||
Adjusted EPS - diluted | 0.44 | 0.42 | |||||||
As at | % | ||
(in millions of euros) | June 30, 2024 | December 31, | YoY |
(unaudited) | (audited) | ||
Net Debt | (2,612) | (1,689) | 54.6 % |
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. |
Q2 2024 Results
Revenue for the second quarter of 2024 was
EBITDA for the quarter improved
H1 2024 Results
In the half year ended June 30, 2024 ("H1 2024"), UMG's revenue increased to
Cost of revenues, consisting of artist and product costs, increased by
EBITDA of
Operating profit improved
Net profit attributable to equity holders of the parent in H1 2024 amounted to
Net cash provided by operating activities before income tax paid decreased
Cash paid for catalogue acquisitions was
In line with UMG's dividend policy to pay a dividend of at least
Net debt at the end of H1 2024 was
Recorded Music
Three Months Ended June 30, | % | % | Six Months Ended June 30, | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Subscriptions and streaming | 1,480 | 1,426 | 3.8 % | 4.1 % | 2,945 | 2,755 | 6.9 % | 7.9 % | |
of which streaming | 343 | 358 | (4.2 %) | (3.9 %) | 685 | 673 | 1.8 % | 2.5 % | |
of which subscription | 1,137 | 1,068 | 6.5 % | 6.9 % | 2,260 | 2,082 | 8.5 % | 9.6 % | |
Downloads and other digital | 48 | 61 | (21.3 %) | (18.6 %) | 94 | 116 | (19.0 %) | (16.8 %) | |
Physical | 357 | 326 | 9.5 % | 14.4 % | 612 | 639 | (4.2 %) | 0.3 % | |
License and other | 315 | 267 | 18.0 % | 18.0 % | 539 | 493 | 9.3 % | 10.2 % | |
Recorded Music revenues | 2,200 | 2,080 | 5.8 % | 6.8 % | 4,190 | 4,003 | 4.7 % | 6.3 % | |
EBITDA | 959 | 698 | 37.4 % | 41.4 % | |||||
EBITDA margin | 22.9 % | 17.4 % | 5.5pp | ||||||
Adjusted EBITDA | 1,065 | 969 | 9.9 % | 11.9 % | |||||
Adjusted EBITDA margin | 25.4 % | 24.2 % | 1.2pp | ||||||
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. |
Q2 2024
Recorded Music revenue for the second quarter of 2024 was
H1 2024
Recorded Music revenue in H1 2024 was
Subscription revenue grew
Recorded Music EBITDA of
Music Publishing
Three Months Ended June 30, | % | % | Six Months Ended June 30, | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Performance | 100 | 97 | 3.1 % | 4.2 % | 214 | 187 | 14.4 % | 15.7 % | |
Synchronisation | 61 | 60 | 1.7 % | 1.7 % | 124 | 129 | (3.9 %) | (3.1 %) | |
Digital | 311 | 264 | 17.8 % | 17.4 % | 595 | 495 | 20.2 % | 20.7 % | |
Mechanical | 26 | 29 | (10.3 %) | (10.3 %) | 51 | 52 | (1.9 %) | (1.9 %) | |
Other | 13 | 14 | (7.1 %) | 0.0 % | 24 | 26 | (7.7 %) | 0.0 % | |
Music Publishing revenues | 511 | 464 | 10.1 % | 10.4 % | 1,008 | 889 | 13.4 % | 14.3 % | |
EBITDA | 229 | 186 | 23.1 % | 23.8 % | |||||
EBITDA margin | 22.7 % | 20.9 % | 1.8pp | ||||||
Adjusted EBITDA | 241 | 216 | 11.6 % | 12.1 % | |||||
Adjusted EBITDA margin | 23.9 % | 24.3 % | (0.4pp) | ||||||
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. |
Q2 2024
Music Publishing revenue in the second quarter of 2024 was
H1 2024
Music Publishing revenue amounted to
Music Publishing EBITDA of
Merchandising and Other
Three Months Ended June 30, | % | % | Six Months Ended June 30, | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Merchandising and other revenues | 227 | 157 | 44.6 % | 43.7 % | 341 | 264 | 29.2 % | 29.7 % | |
EBITDA | 18 | 17 | 5.9 % | 5.9 % | |||||
EBITDA margin | 5.3 % | 6.4 % | (1.1pp) | ||||||
Adjusted EBITDA | 18 | 20 | (10.0 %) | (10.0 %) | |||||
Adjusted EBITDA margin | 5.3 % | 7.6 % | (2.3pp) | ||||||
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. |
Q2 2024
Merchandising and Other revenue in the second quarter of 2024 was
H1 2024
Merchandising and Other revenue grew to
Merchandising and Other EBITDA of
Conference Call Details
The Company will host a conference call to discuss these results on July 24, 2024 at 6:15PM CEST. 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, UMG's inability to protect its intellectual property and against piracy, UMG's inability to attract and retain key personnel, changes in laws and regulations and the other risks that are described in our 2023 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 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 Interim Financial Review and Unaudited Condensed Consolidated Interim Financial Statements which is available on our website at investors.universalmusic.com/reports.
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
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September 17, 2024 (additional details available at investors.universalmusic.com)
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