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Universal Music Group's Q3 2025 Financial Results

On October 30, 2025, Universal Music Group N.V. (UMG) unveiled its financial outcomes for the third quarter and the first nine months of the year, revealing strong growth across all operational segments. The company's revenue for the third quarter reached €3,021 million, marking a 5.3% increase compared to the same period last year. When adjusted for constant currency, this growth accelerated to 10.2%. The quarter’s performance significantly benefited from robust earnings in recorded music, music publishing, and merchandising.

Breakdown of Financial Results

Recorded Music Performance

Within the recorded music sector, revenue totaled €2,223 million, reflecting a 3.6% increase year-over-year, or an 8.3% rise in constant currency. Monthly subscription revenue was a highlight of the quarter, advancing by 3.6%, attributed primarily to a growing global subscriber base. However, streaming revenue experienced a decline of 4.8%, although this was in line with last year's performance when measured in constant currency. Notably, physical sales surged, up by 18.4% year-over-year, buoyed by high-profile album releases, especially noted for Taylor Swift's exciting new project.

Music Publishing Growth

The music publishing business also witnessed encouraging results, generating revenue of €543 million in the third quarter. This represents an 8.6% increase from the previous year, reflecting a strong 13.6% growth when adjusted for constant currency. The uptick stemmed from higher digital and performance revenues, indicating a flourishing environment for composers and songwriters associated with UMG.

Merchandising and Other Segments

Moreover, the merchandising segment showed an uptick with revenues reaching €259 million, an increase of 9.3% year-over-year. This growth was primarily driven by robust sales from touring merchandise. However, lower direct-to-consumer sales slightly tempered this positive trend due to timing issues with product releases.

Year-to-Date Performance

Looking at the year-to-date results, UMG reported a total revenue of €8,902 million for the first nine months of the year, reflecting a 6.0% year-over-year gain, or an 8.0% improvement in constant currency. This growth was significantly propelled by the recorded music and music publishing segments, with subscription revenue up by 6.8% and streaming revenue increasing slightly by 0.9%.

Management Insights

Sir Lucian Grainge, UMG's Chairman and CEO, emphasized the company’s commitment to long-term value creation, highlighting the progress made on strategic initiatives aimed at ensuring artists' success while addressing the industry's growing interest in responsible AI projects and new streaming models. CFO Matt Ellis further credited their success this quarter to notable shifts in subscriber growth and the strength of UMG’s global partnerships. The company has managed to benefit from its extensive roster of artists and has remained focused on executing its strategic plan amidst a rapidly evolving music industry landscape.

Conclusion

Overall, Universal Music Group's third-quarter results for 2025 demonstrate its resilience and adaptability in a fast-changing environment. As the company looks to future quarters, it will likely continue harnessing its comprehensive catalog of music and innovative strategies to foster growth and drive meaningful connections between artists and listeners. Following this release, UMG will host a conference call for investors and analysts to delve deeper into these results and answer any questions regarding the company's performance and future outlook.