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Universal Music Group Financial Summary for Q2 and H1 2025

Universal Music Group N.V. (UMG) recently announced its financial results for the second quarter of 2025, showing a notable increase in revenue driven by the growth of the Recorded Music and Music Publishing segments. The company reported total revenue of €2,980 million, marking a year-over-year increase of 1.6%, or 4.5% when adjusted for constant currency.

UMG's success is largely attributed to the rise in subscription and streaming revenue within the Recorded Music sector, which grew by 5.3% and 4.4% respectively. This contributed significantly to the overall growth, indicating a robust demand for music consumption in various formats.

Financial Highlights

• - Q2 Revenue: €2,980 million, an increase of 1.6% year-over-year.
• - Adjusted EBITDA: €676 million, reflecting a 4.2% increase.
• - EBITDA Margin: Improved to 22.7%, up 0.6 percentage points.
• - H1 Revenue: €5,881 million, up 6.4% year-over-year.
• - Interim Dividend: The board declared an interim dividend of €440 million, equating to €0.24 per share.

Chairman and CEO Lucian Grainge emphasized the importance of the creative excellence of artists and songwriters at UMG, coupled with strategic execution that consistently delivers solid financial performance. He expressed confidence in the company’s growth trajectory as UMG invests in maximizing long-term value and returns for its shareholders.

Key Segments Performance

1. Recorded Music: Revenues reached €2,224 million in Q2, growing 1.1% year-over-year. This segment saw substantial gains in subscription models, underlining the shift towards digital consumption.
- Notable Artists: Morgan Wallen, Lady Gaga, and Sabrina Carpenter contributed significantly to the sales.

2. Music Publishing: This segment reported revenue of €570 million, an impressive year-over-year increase of 11.5%. Digital segments showed a compelling growth of 12.9%, reflecting the increasing integration of music streaming in everyday life.

3. Merchandising and Other: Unfortunately, this category experienced a decline of 15.4%, affected by the challenging comparison with prior year results that benefited from significant direct-to-consumer sales. This highlights the volatility in merchandise sales linked to new releases.

Looking Forward

With an expanded portfolio of artists and diversified revenue streams, UMG's focus on strategic growth remains steadfast. The company anticipates continued enhancements to its overall profitability as it adapts to the rapidly evolving music industry landscape. The increase in net debt to €2,734 million is linked to funding investing activities and supporting dividends, reflecting confidence in future earnings potential.

Moreover, exciting new releases and advancements in music technology promise to keep UMG at the forefront of industry innovations. As consumer preferences shift towards streaming and digital formats, UMG is well-poised to capitalize on these trends.

In summary, Universal Music Group's financial report for the second quarter and first half of 2025 reflects a solid performance with significant growth in key segments, demonstrating the company's resilience and forward-thinking strategies in the music industry.