Universal Music generated $3.15 billion in revenue in the second quarter, driven by top-selling musicians such as Taylor Swift, Billie Eilish, and SEVENTEEN

universal music group Introduced second quarter and first half monetary outcomes.

The highest statistic from the world’s largest music rights firm’s second-quarter outcomes (the three months to the tip of June): Common Music Group (UMG) income was 2.932 billion euros Covers all its sectors (together with recorded music, publishing, and so on.).

UMG’s second quarter income figures translate to US$3.15 billion Calculated based mostly on the quarterly common change charge revealed by the European Central Financial institution, Annual enhance of 9.6% Calculated at a set change charge.

UMG Chairman and CEO feedback on outcomes Sir Lucian Grange” stated: “Our continued robust income progress this quarter demonstrates that we’re, by design, a various music leisure firm that places our artists on the heart of all the things we do.

“Our continued robust income progress in the course of the quarter demonstrates that we’re, by design, a various music leisure firm that places our artists on the heart of all the things we do.”

Sir Lucian Grange

He added: “Our distinctive construction is each modern and evolving, permitting us to assist our recording artists and songwriters with ever-expanding income streams and thru new merchandise and thrilling streaming providers. Stage one improvement is enhanced.

Different highlights from UMG’s second quarter embrace Annual progress of 6.9% The corporate’s subscription streaming income surges Annual enhance of 14.4% a rise within the company entity’s income, and Annual enhance of 43.7% Progress of the “Merchandise & Others” income phase.

recorded music

Common’s whole recorded music income (together with streaming media and bodily music, and so on.) within the second quarter of 2024 is 2.2 billion euros ($2.368 billion), up 6.8% 12 months-on-year Calculated at mounted change charges (see beneath).

In recorded music, UMG’s “subscription and streaming income” (together with ad-supported and subscription streaming income) grew 4.1% in contrast with the identical interval final yr Calculated at mounted change charge €1.480 billion (US$1.593 billion).

Detailed evaluation of UMG’s recorded music streaming knowledge additional demonstrates that the corporate’s subscription Streaming income progress Annual progress of 6.9% Calculated at mounted change charge 1.137 billion euros ($1.224 billion).

UMG stated the expansion was “primarily as a consequence of world consumer progress and the affect of sure worth will increase.”

Proof of worldwide consumer progress arrived yesterday. The world’s largest subscription music streaming service, Spotify, reported yesterday (July 23) It added 7 mega Premium subscriber numbers for the second quarter ended the quarter with a world premium subscriber base of 246 million Paying customers.

In the meantime, the value will increase talked about by UMG might also refer to cost will increase applied by corporations comparable to Spotify, which final July elevated its flagship subscription worth factors in a number of areas, together with the US and the UK. For the first time in its 15-year history. Simply lower than a yr later, it Increase subscription price again In main mature markets, together with the US and the UK.

In the meantime, Common’s ad-supported recorded music streaming income fell Annual progress of three.9% Calculated at mounted change charge 343 million euros ($369.3 million), which, in response to UMG, was as a consequence of “slower progress amongst primarily advertising-based platform companions and funding shortfalls on sure platforms associated to the timing of deal renewals.”

Bodily income surges in Common Music Group’s music enterprise Annual enhance of 14.4% Calculated at mounted change charge €357 million ($384.38 million). Common Music Group attributed the expansion to “favorable launch schedules driving vinyl gross sales within the U.S. and Europe” and stated it “greater than offset the difficulties in comparison with final yr’s robust CD gross sales in Japan.”

Common Music Group’s recorded music enterprise sees ‘licensing and different’ income develop 18% annual enhance Based mostly on reporting foreign money and glued foreign money. UMG reported that the expansion was “as a consequence of improved synchronization income, increased dwell and audiovisual manufacturing income and a rise in direct-to-consumer associated actions.”

This season’s best-selling merchandise embrace Taylor Swift, Billie Eilish, SEVENTEEN, Morgan Wallen and Pooh! groupwhereas the best-selling merchandise throughout the identical interval final yr included King & Prince, Morgan Wallen, SEVENTEEN, Taylor Swift and Stray Youngsters.

music publishing

Elsewhere, Common Photos’ music publishing arm, Universal Music Publishing Groupthe income generated is 511 million euros Second quarter ($550.19 million), up 10.4% 12 months-on-year Calculated at mounted change charges (see beneath).

In music publishing, digital income reached €311 million ($334.85 million), up 17.4% 12 months-on-year On a relentless foreign money foundation, UMG stated it was pushed by “progress in streaming and subscription income, in addition to progress in transaction alternatives.”

Synchronized income progress Annual enhance of 1.7% 12 months-over-year ends in reporting foreign money and fixed foreign money.

In the meantime, equipment income fell Annual progress of 10.3% UMG stated in Tuesday’s submitting that it was “calculated at a relentless change charge as a result of business’s continued shift to digital codecs.”

Advertising and others

Merchandise gross sales and different income within the second quarter of 2024 will attain 227 million euros ($244.41 million),elevated Annual enhance of 43.7% Calculated at a set change charge.

UMG reported that the expansion was pushed by “progress in direct-to-consumer gross sales and elevated touring merchandise gross sales as a consequence of robust touring exercise in the course of the interval.”

Curiosity, tax, depreciation and amortization advance revenue, and so on.

Q2 2024, UMG Curiosity, tax, depreciation and amortization advance revenue (earnings earlier than curiosity, taxes, depreciation) progress Annual enhance of 17.4% Calculated at mounted change charge 580 million euros ($624.48 million).

EBITDA margin is 19.8%in comparison with 18.7% Season 2, 2023.

UMG famous within the submitting that EBITDA and EBITDA margin have been impacted by non-cash stock-based wage bills of €69 million within the second quarter of 2024, in contrast with €85 million within the second quarter of 2023.

Excluding these non-cash share-based compensation bills, UMG’s Adjusted advance revenue after curiosity, tax, depreciation and amortization The second season is €649 million ($698.77 million), up Annual enhance of 11.3% Calculated at a set change charge.

On the identical time, as could be seen from the desk above, UMG’s adjusted EBITDA margin expanded by 0.2 proportion factors to 22.1% Season 2 2024 with 21.9% Common famous that “income progress and price financial savings ensuing from the beforehand introduced strategic organizational redesign have been partially offset by an unfavorable affect on the income combine ensuing from a rise within the proportion of merchandise gross sales and bodily gross sales.”

“We are going to proceed to put money into the expansion we’re seeing as we execute on our long-term strategic plan.”

Boyd Muir, UMG

Boyd Muir, UMG govt vp, chief monetary officer and president of operations, added: “Our numerous income streams throughout rising and mature companies positioned us to as soon as once more obtain high-single-digit income progress and double-digit adjusted EBITDA progress in the course of the quarter. .

“We are going to proceed to put money into the expansion we’re seeing as we execute on our long-term strategic plan.”

All references to year-over-year percentages on this report, whether or not explicitly said or not, are calculated at fixed change charges. All EURUSD change charges for Q2 2024 on this report are based mostly on the common present quarterly change charge decided by the European Central Financial institution.

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