Universal Music Group N.V. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2024
Universal Music Group reported Q3 2024 revenue of €2,870 million, up 4.3% year-over-year (4.9% in constant currency). Recorded Music subscription revenue grew 7.6%, while streaming revenue declined 0.8%. Adjusted EBITDA increased 6.9% to €621 million, with margin expanding to 21.6%. For the first nine months of 2024, revenue reached €8,396 million, up 6.3%, with Adjusted EBITDA growing 10% to €1,862 million. Top performers included Taylor Swift, Sabrina Carpenter, and Billie Eilish. The company announced Boyd Muir's promotion to Chief Operating Officer while maintaining CFO duties until a replacement is found.
Universal Music Group ha riportato entrate per il terzo trimestre del 2024 pari a 2.870 milioni di euro, in aumento del 4,3% rispetto all'anno precedente (4,9% a valuta costante). Le entrate da abbonamenti della Musica Registrata sono cresciute del 7,6%, mentre le entrate da streaming sono diminuite dello 0,8%. L'EBITDA Adjusted è aumentato del 6,9% a 621 milioni di euro, con un margine che si è espanso al 21,6%. Nei primi nove mesi del 2024, le entrate hanno raggiunto 8.396 milioni di euro, in aumento del 6,3%, con l'EBITDA Adjusted in crescita del 10% a 1.862 milioni di euro. I principali artisti di successo includono Taylor Swift, Sabrina Carpenter e Billie Eilish. L'azienda ha annunciato la promozione di Boyd Muir a Direttore Operativo, mantenendo contestualmente le funzioni di CFO fino a quando non verrà trovato un sostituto.
Universal Music Group reportó ingresos del tercer trimestre de 2024 por 2.870 millones de euros, un incremento del 4,3% interanual (4,9% en moneda constante). Los ingresos por suscripciones de Música Grabada crecieron un 7,6%, mientras que los ingresos por streaming disminuyeron un 0,8%. El EBITDA Ajustado aumentó un 6,9% hasta 621 millones de euros, con un margen que se expandió al 21,6%. En los primeros nueve meses de 2024, los ingresos alcanzaron 8.396 millones de euros, un 6,3% más, con el EBITDA Ajustado creciendo un 10% hasta 1.862 millones de euros. Los artistas más destacados incluyeron a Taylor Swift, Sabrina Carpenter y Billie Eilish. La compañía anunció la promoción de Boyd Muir a Director de Operaciones, manteniendo a la vez las funciones de CFO hasta que se encuentre un reemplazo.
유니버설 뮤직 그룹은 2024년 3분기 수익이 28억 7천만 유로에 달하며, 전년 대비 4.3% 증가했다고 보고했습니다 (상수 기준으로는 4.9%). 레코딩 음악의 구독 수익은 7.6% 성장했지만, 스트리밍 수익은 0.8% 감소했습니다. 조정된 EBITDA는 6.9% 증가하여 6억 2천 1백만 유로에 이르렀으며, 마진은 21.6%로 확장되었습니다. 2024년 1~9월 동안 수익은 83억 9천 6백만 유로에 달해 6.3% 증가했으며, 조정된 EBITDA는 10% 증가하여 18억 6천 2백만 유로에 도달했습니다. 주요 아티스트로는 테일러 스위프트, 사브리나 카펜터, 그리고 빌리 아일리시가 포함되었습니다. 회사는 보이드 뮤어를 최고 운영 책임자로 승진시키고, 대체 인사가 결정될 때까지 CFO 직무를 유지한다고 발표했습니다.
Universal Music Group a rapporté un chiffre d'affaires de 2,870 millions d'euros pour le troisième trimestre 2024, en hausse de 4,3 % par rapport à l'année précédente (4,9 % à taux de change constant). Les revenus d'abonnement de la Musique Enregistrée ont augmenté de 7,6 %, tandis que les revenus de streaming ont diminué de 0,8 %. Le BAIIA Ajusté a augmenté de 6,9 % pour atteindre 621 millions d'euros, avec une marge passant à 21,6 %. Pour les neuf premiers mois de 2024, les revenus ont atteint 8,396 millions d'euros, en hausse de 6,3 %, avec un BAIIA Ajusté en croissance de 10 % à 1,862 millions d'euros. Les meilleurs artistes incluent Taylor Swift, Sabrina Carpenter et Billie Eilish. L'entreprise a annoncé la promotion de Boyd Muir au poste de Directeur de l'exploitation tout en conservant les responsabilités de CFO jusqu'à ce qu'un remplaçant soit trouvé.
Universal Music Group berichtete im dritten Quartal 2024 über Einnahmen in Höhe von 2.870 Millionen Euro, was einem Anstieg von 4,3% im Jahresvergleich entspricht (4,9% in konstanten Währungen). Die Abonnementeinnahmen aus Aufgezeichneter Musik wuchsen um 7,6%, während die Streaming-Einnahmen um 0,8% zurückgingen. Das bereinigte EBITDA stieg um 6,9% auf 621 Millionen Euro, mit einer Margenausweitung auf 21,6%. In den ersten neun Monaten 2024 erreichten die Einnahmen 8.396 Millionen Euro, was einem Anstieg von 6,3% entspricht, während das bereinigte EBITDA um 10% auf 1.862 Millionen Euro wuchs. Zu den Top-Künstlern gehörten Taylor Swift, Sabrina Carpenter und Billie Eilish. Das Unternehmen gab die Beförderung von Boyd Muir zum Chief Operating Officer bekannt und behielt gleichzeitig die CFO-Aufgaben bei, bis ein Nachfolger gefunden ist.
- Revenue growth of 4.3% YoY to €2,870 million in Q3 2024
- Adjusted EBITDA increased 6.9% to €621 million with margin expansion
- Subscription revenue grew 7.6% in Recorded Music segment
- YTD revenue up 6.3% to €8,396 million
- Strong performance in synchronization income and touring merchandise
- Streaming revenue declined 0.8% year-over-year in Q3
- Physical revenue decreased 2.0% year-over-year
- Downloads and other digital revenue declined 28.8%
- Performance revenue in Music Publishing declined 4.7%
Announces Promotion of Boyd Muir to Chief Operating Officer, Plans for Chief Financial Officer Transition
Summary Q3 2024 Results1
- Revenue of
€2,870 million increased4.3% year-over-year, or4.9% in constant currency, with growth in all segments. Excluding a prior-year item affecting comparability, detailed below, revenue grew6.3% year-over-year, or7.0% in constant currency. - Recorded Music subscription revenue grew
7.6% year-over-year, or8.2% in constant currency while streaming revenue declined0.8% year-over-year, but grew0.3% in constant currency. - Adjusted EBITDA of
€621 million increased6.9% year-over-year, or8.2% in constant currency, and Adjusted EBITDA margin expanded 0.5 percentage points to21.6% . Excluding a prior-year item affecting comparability, detailed below, Adjusted EBITDA grew8.9% year-over-year, or10.3% in constant currency. - Top sellers included Taylor Swift, Sabrina Carpenter, Billie Eilish, Chappell Roan and Post Malone.
Summary YTD Results1
- Revenue of
€8,396 million increased6.3% year-over-year, or7.4% in constant currency, driven by strong growth in all segments. Excluding a prior-year item affecting comparability, detailed below, revenue grew7.0% year-over-year, or8.2% in constant currency. - Recorded Music subscription revenue grew
8.2% year-over-year, or9.2% in constant currency and streaming revenue grew0.9% year-over-year, or1.8% in constant currency. - Adjusted EBITDA of
€1,862 million increased10.0% year-over-year, or11.7% in constant currency, and Adjusted EBITDA margin expanded 0.8 percentage points to22.2% . Excluding a prior-year item affecting comparability, detailed below, Adjusted EBITDA grew10.8% year-over-year, or12.4% in constant currency. - Top sellers included Taylor Swift, Billie Eilish, Morgan Wallen, Sabrina Carpenter and Noah Kahan.
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 Appendix to this press release.
HILVERSUM,
"Even as we continue to grow revenue and Adjusted EBITDA, we are already making progress on the strategic initiatives we outlined at our recent Capital Markets Day," said Sir Lucian Grainge, UMG's Chairman and CEO. "We continue to advance our Artist-Centric strategy, a key pillar of our work to evolve streaming's underlying business model, or what we call 'Streaming 2.0'. Through these initiatives, we are setting the stage for a new wave of streaming growth and new opportunities to UMG, its artists, songwriters and shareholders."
Boyd Muir, UMG's EVP, CFO and President of Operations, said, "Our focus remains on maximizing the long-term value of the business. The diversity of our revenue is not only driving attractive results in revenue and Adjusted EBITDA growth for UMG this quarter, but also positioning the company for strong continued growth in the coming years."
UMG Results
Three Months Ended September 30, | % | % | Nine Months Ended September 30, | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Revenue | 2,870 | 2,752 | 4.3 % | 4.9 % | 8,396 | 7,901 | 6.3 % | 7.4 % | |
EBITDA | 556 | 478 | 16.3 % | 17.8 % | 1,626 | 1,244 | 30.7 % | 33.6 % | |
EBITDA margin | 19.4 % | 17.4 % | 2.0pp | 19.4 % | 15.7 % | 3.7pp | |||
Adjusted EBITDA | 621 | 581 | 6.9 % | 8.2 % | 1,862 | 1,692 | 10.0 % | 11.7 % | |
Adjusted EBITDA margin | 21.6 % | 21.1 % | 0.5pp | 22.2 % | 21.4 % | 0.8pp | |||
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. | |||||||||
Q3 2024 Results
Revenue for the third quarter of 2024 was
UMG's Recorded Music, Music Publishing and Merchandising and Other segments all contributed to the revenue growth in the quarter, as discussed further below.
EBITDA for the quarter increased
EBITDA and Adjusted EBITDA in the third quarter of 2023 included an
YTD 2024 Results
In the nine months ended September 30, 2024, UMG's revenues of
Revenue for the nine months ended September 30, 2023 included the
For the nine months ended September 30, 2024, EBITDA of
EBITDA and Adjusted EBITDA for the nine months ended September 30, 2023 included the
Recorded Music
Three Months Ended September 30, | % | % | Nine Months Ended September 30, | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Subscriptions and streaming | 1,491 | 1,414 | 5.4 % | 6.2 % | 4,436 | 4,169 | 6.4 % | 7.3 % | |
of which streaming | 354 | 357 | (0.8 %) | 0.3 % | 1,039 | 1,030 | 0.9 % | 1.8 % | |
of which subscription | 1,137 | 1,057 | 7.6 % | 8.2 % | 3,397 | 3,139 | 8.2 % | 9.2 % | |
Downloads and other digital | 42 | 59 | (28.8 %) | (28.8 %) | 136 | 174 | (21.8 %) | (21.4 %) | |
Physical | 288 | 294 | (2.0 %) | (0.7 %) | 900 | 933 | (3.5 %) | 0.0 % | |
License and other | 325 | 270 | 20.4 % | 21.7 % | 863 | 764 | 13.0 % | 14.2 % | |
Recorded Music revenues | 2,146 | 2,037 | 5.4 % | 6.2 % | 6,335 | 6,040 | 4.9 % | 6.3 % | |
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. | |||||||||
Q3 2024
Recorded Music revenues for the third quarter of 2024 were
YTD 2024 Results
In the nine months ended September 30, 2024, Recorded Music revenues were
Music Publishing
Three Months Ended September 30, | % | % | Nine Months Ended September 30, | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Performance | 101 | 106 | (4.7 %) | (3.8 %) | 315 | 293 | 7.5 % | 8.6 % | |
Synchronisation | 64 | 55 | 16.4 % | 18.5 % | 187 | 183 | 2.2 % | 2.7 % | |
Digital | 295 | 294 | 0.3 % | 0.7 % | 890 | 789 | 12.8 % | 13.4 % | |
Mechanical | 28 | 25 | 12.0 % | 12.0 % | 79 | 77 | 2.6 % | 2.6 % | |
Other | 12 | 11 | 9.1 % | 0.0 % | 37 | 38 | (2.6 %) | 0.0 % | |
Music Publishing revenues | 500 | 491 | 1.8 % | 2.2 % | 1,508 | 1,380 | 9.3 % | 10.0 % | |
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. | |||||||||
Q3 2024
Music Publishing revenue amounted to
Within Music Publishing, digital revenue grew
YTD 2024 Results
In the nine months ended September 30, 2024, Music Publishing revenue amounted to
Within Music Publishing, digital revenue grew
Merchandising and Other
Three Months Ended September 30, | % | % | Nine Months Ended September 30, | % | % | ||||
(in millions of euros) | 2024 | 2023 | YoY | const. | 2024 | 2023 | YoY | const. | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Merchandising and other revenues | 237 | 227 | 4.4 % | 3.5 % | 578 | 491 | 17.7 % | 17.5 % | |
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. | |||||||||
Q3 2024
Merchandising and other revenue in the third quarter of 2024 was
YTD 2024 Results
Merchandising and other revenue of
Chief Financial Officer Transition
Universal Music Group EVP, CFO and President of Operations Boyd Muir has been promoted to the newly created role of Chief Operating Officer (COO) of UMG, continuing to report directly to Sir Lucian Grainge, UMG´s Chairman and CEO. The Company is immediately initiating an executive search process to identify a new CFO. Until such time as a new CFO is appointed, Mr. Muir will serve as both COO and CFO. Mr. Muir has served as CFO of UMG since 2010 and was previously CFO for Universal Music Group International for 11 years.
"Boyd has done an outstanding job leading UMG's global financial functions through a period of unprecedented growth and change, including our successful listing on the Euronext in 2021, and our last three years as a stand-alone public company," said Sir Lucian Grainge, UMG´s Chairman and CEO. "Now, as we turn to executing on the vision we outlined at our recent Capital Markets Day, as Chief Operating Officer, Boyd will focus on helping us drive the transformation of several of our key worldwide operations to ensure we deliver on our strategic plan."
Items Impacting Comparability of Results
TOTAL UMG
Three Months Ended September 30, | Nine Months Ended September 30, | |||
(in millions of euros) | 2024 | 2023 | 2024 | 2023 |
Revenue | ||||
CRB Phonorecords III Accrual | - | 53 | - | 53 |
Adjusted EBITDA | ||||
CRB Phonorecords III Accrual | - | 11 | - | 11 |
MUSIC PUBLISHING
Three Months Ended September 30, | Nine Months Ended September 30, | |||
(in millions of euros) | 2024 | 2023 | 2024 | 2023 |
Revenue | ||||
CRB Phonorecords III Accrual | - | 53 | - | 53 |
Adjusted EBITDA | ||||
CRB Phonorecords III Accrual | - | 11 | - | 11 |
CRB Phonorecords III Accrual
Revenue, EBITDA and Adjusted EBITDA in 2023 included the accrual for a catch-up payment from certain digital service providers related to the Copyright Royalty Board Phonorecords III ruling in 2023 disclosed and booked in Q3 2023.
Conference Call Details
The Company will host a conference call to discuss these results on Thursday, October 31, 2024, 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, UMG's inability to attract and retain key personnel, changes in laws and regulations (and UMG's compliance therewith) 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 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
Appendix
Non-IFRS Alternative Performance Indicators and Reconciliations
Reconciliation of Adjusted EBITDA
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | |||||
(in millions of euros) | 2024 | 2023 | YoY | 2024 | 2023 | YoY | ||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||
EBITDA | 556 | 478 | 16.3 % | 1,626 | 1,244 | 30.7 % | ||
Non-cash share-based compensation expenses | 65 | 103 | (36.9 %) | 236 | 448 | (47.3 %) | ||
Adjusted EBITDA | 621 | 581 | 6.9 % | 1,862 | 1,692 | 10.0 % | ||
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 Accounting Standards ("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 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 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:
i. amortization of intangible assets;
ii. impairment losses on goodwill and other intangibles;
iii. depreciation of tangible assets including right of use assets;
iv. (gains)/losses on the sale of tangible assets, including right of use assets and intangible assets; and
v. restructuring expenses.
Adjusted EBITDA and Adjusted EBITDA margin
The difference between EBITDA and Adjusted EBITDA consists of non-cash share-based compensation expenses and, if applicable, certain one-time items 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 segments excluding items that may be incidental to normal business activity and excluding non-cash share based compensation which may impact period-to-period comparability.
View original content to download multimedia:https://www.prnewswire.com/news-releases/universal-music-group-nv-reports-financial-results-for-the-third-quarter-and-nine-months-ended-september-30-2024-302293131.html
SOURCE Universal Music Group N.V.
FAQ
What was Universal Music Group's (UNVGY) revenue in Q3 2024?
How did UNVGY's streaming revenue perform in Q3 2024?
Who were UNVGY's top performing artists in Q3 2024?
What was UNVGY's Adjusted EBITDA margin in Q3 2024?
