UMG Revenue Grows to $3.38B on Subscription & Publishing Gains as Physical, Merch Take a Hit

Overall revenue grew 4.5% (in constant currency) as a double-digit gain from music publishing was tempered by 3.9% recorded music growth and a decline in merchandising. General views of the Universal Music Group corporate offices on December 22, 2020 in Santa Monica, California. AaronP/Bauer-Griffin/GC Images Buoyed by hits by Morgan Wallen and Sabrina Carpenter, Universal Music Group (UMG) had revenue of 2.98 billion euros ($3.38 billion) in the second quarter, up 4.5% in constant currency, which removes the effects of foreign exchange changes. On a reported basis, which takes foreign exchange into account, revenue was up 1.6%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a common measure of profitability that removes some non-operational expenses, rose 7.3% in constant currency (4.2% as reported) to 676 million euros ($766 million). Adjusted EBITDA margin rose to 22.7% from 22.1%. Related “We are pleased with the strong growth in subscription, ad supported [streaming] and music publishing revenue, which more than offset particularly difficult comparisons in physical and merchandising revenue,” COO Boyd Muir said during the earnings call on Thursday (July 31). Trending on Billboard In UMG’s recorded music segment, second quarter revenue grew 3.9% (1.1% as reported) to 2.22 billion euros ($2.5
Read More