#Netherlands #Taylor Swift #Universal Music Group #Hilversum #KPop Demon Hunters

Universal Music Group's Financial Performance - Q3 2025

Universal Music Group N.V. (UMG) has announced its financial outcomes for the third quarter and the first nine months ending September 30, 2025. The company shows robust financial health with revenue rising to €3,021 million, representing a 5.3% increase compared to the same quarter last year. In constant currency, the upsurge was even more significant at 10.2%.

Detailed Breakdown of Q3 Results

Revenue Gains Across Segments

UMG's growth was not limited to a specific segment; all divisions experienced noteworthy performance boosts:

• - Recorded Music revenue increased by 3.6% year-over-year, marking an 8.3% growth in constant currency.
• - Music Publishing revenue surged by 8.6%, translating to a 13.6% rise when adjusted for constant currency.
• - Revenue from Merchandising and Other activities grew by 9.3%, reaching an increase of 15.6% in constant terms.

The Adjusted EBITDA for the quarter stood at €664 million, reflecting a 6.9% year-on-year increase, or 11.6% in constant currency, leading to an Adjusted EBITDA margin of 22.0%.

Notable Contributors

Some of the top-selling artists that fueled this revenue growth included the soundtrack for the KPop Demon Hunters, alongside popular UMG artists such as Taylor Swift, Sabrina Carpenter, Morgan Wallen, and Mrs. GREEN APPLE. It's evident that a diverse roster of talent continues to enrich UMG's profitability.

Year-to-Date Performance

For the nine months ending September 30, 2025, UMG's total revenue reached an impressive €8,902 million. This indicates a 6.0% increase from the previous year, or an 8.0% increase in constant currency. Key factors in this growth include:

• - Recorded Music subscription revenue grew by 6.8%, almost mirroring the 8.9% increase in constant currency.
• - An uptick of 0.9% in streaming revenue was also noted, along with a favorable 5.4% increase in recorded music revenue overall.

The company reported an Adjusted EBITDA of €2,000 million for the year to date, an increase of 7.4% compared to last year, achieving an Adjusted EBITDA margin of 22.5%.

Insights from Leadership

Sir Lucian Grainge, UMG's Chairman and CEO, commented on the results, saying: "As we position the company for long-term value creation, we continued to achieve strong results this quarter." He emphasized the sustained efforts toward enhancing partner relationships, expanding strategic plans, and the successful introduction of UMG's initiatives regarding responsible artificial intelligence and streaming services.

CFO Matt Ellis added, "Our strong quarter was driven by healthy results across all segments of our business, showcasing the versatility and strategic vision of UMG."

Conclusion

With continual growth in revenue and successful navigation of the ever-evolving music industry landscape, Universal Music Group N.V. is poised for ongoing success. The noteworthy results demonstrate UMG's solid position in the market as a leader in music-based entertainment.

As UMG prepares to delve even deeper into global markets and modernize existing structures, stakeholders and investors alike remain optimistic about the company's trajectory moving forward.

For more details, the company's executives will discuss these financial results in an upcoming conference call, providing further insights into their strategies and future outlook.