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Universal Music Group Reports Gains in Revenue and Profitability for Q2 and H1 2025

On July 31, 2025, Universal Music Group N.V. (UMG) unveiled strong financial results for the second quarter and the first half of the fiscal year ending June 30, 2025. Driven by dynamic growth in both the Recorded Music and Music Publishing sectors, UMG reported a revenue of €2,980 million in Q2 2025, marking an increase of 1.6% compared to the previous year. When adjusted for constant currency, this figure represents a more substantial growth of 4.5%.

Key Highlights from Q2 2025

The second quarter saw notable growth in multiple areas:

- Recorded Music Revenue: An increase of 1.1% year-over-year to €2,224 million, which translates to a growth of 3.9% when considering constant currency. This segment's income primarily benefitted from incremental subscription growth, rising by 5.3%, along with streaming revenue that saw a 4.4% increase.
- Music Publishing: Achieving an impressive growth of 11.5% to €570 million, or 14.5% in constant currency. This growth was bolstered by strong digital revenue, which alone increased by 12.9%. Additionally, performance revenue climbed by 11%, supporting the overall upward trend.
- Merchandising and Other Revenues: Unfortunately faced a decline, down 15.4% year-over-year to €192 million. This drop was attributed to the difficult comparison against the prior year's strong sales performance.

The company's dynamic performance has led to an adjusted EBITDA of €676 million, which is 4.2% higher than last year, resulting in an adjusted EBITDA margin of 22.7%, expanding by 0.6 percentage points. This increase is largely viewed as a testament to UMG's strategic management and operational efficiency.

First Half of 2025 Results

For the first half of 2025, UMG's financials were equally impressive, with total revenue reaching €5,881 million, up 6.4% year-over-year and 6.9% in constant currency. Adjusted EBITDA for this period increased by 7.7%, amounting to €1,336 million. The adjusted EBITDA margin also saw a slight increase of 0.3 percentage points.

Chairman and COO Insights

UMG’s Chairman and CEO, Sir Lucian Grainge, commented on the results, highlighting the effectiveness of combining the creativity of artists and songwriters with UMG’s strategic goals, saying, "It is the powerful combination of our artists' and songwriters' creative excellence with our strategic vision and execution that continues to deliver UMG's strong results." COO Boyd Muir echoed these sentiments, elaborating on UMG's diverse business model that has positioned the company well for continued growth, including initiatives aimed at maximizing long-term value.

Investment in Future Growth

The results also reflect UMG's commitment to innovation, particularly as the music landscape continues to evolve. The company plans to remain aggressive in its investments to cultivate growth while balancing cost efficiencies. UMG's business segments reflect a robust adaptation to market trends, especially as digital platforms become increasingly central to music consumption.

Conclusion

With promising financial growth reported for both the second quarter and the first half-year results, UMG illustrates a solid performance amid a competitive landscape. Investors and stakeholders can expect UMG to continue leveraging its brand strengths in artist management to further enhance revenue streams in the upcoming quarters. UMG's next conference call, which will facilitate an in-depth discussion of these results, is scheduled for July 31, 2025. This will provide an opportunity for investors to gain further insights, including Q&A segments specifically designed for analysts and stakeholders.

In summary, Universal Music Group not only showcases impressive financial metrics but reflects a dedicated pathway towards sustainable growth in the rapidly changing global music environment.