{"id":256151,"date":"2026-04-29T18:54:44","date_gmt":"2026-04-29T17:54:44","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=256151"},"modified":"2026-04-29T19:27:34","modified_gmt":"2026-04-29T18:27:34","slug":"universal-music-group-generated-3-39-billion-in-q1-up-8-1-yoy-driven-by-bts-olivia-dean-taylor-swift-and-more","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/universal-music-group-generated-3-39-billion-in-q1-up-8-1-yoy-driven-by-bts-olivia-dean-taylor-swift-and-more\/","title":{"rendered":"UMG generated $3.39 billion in Q1, up 8.1% YoY \u2013 driven by BTS, Olivia Dean, Taylor Swift, and more"},"content":{"rendered":"

Universal Music Group<\/strong> generated revenues of EUR \u20ac2.9 billion (USD $3.39bn)<\/strong> across all of its divisions (including recorded music, publishing, and more) in Q1 (the three months ending March 31, 2026).<\/p>\n

That\u2019s according to\u00a0UMG\u2019s<\/strong>\u00a0fresh set of quarterly results, published today (April 29).<\/p>\n

They reveal that UMG’s overall Q1 revenue\u00a0grew\u00a08.1% YoY<\/span><\/strong>\u00a0at constant currency, driven by the consolidation of\u00a0Downtown Music Holdings<\/strong>, initial pricing benefits from<\/span>\u00a0Streaming 2.0 agreements, strong physical sales, and synchronization income, contributing to growth in Recorded Music and Music Publishing.<\/p>\n

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Excluding Downtown,<\/strong>\u00a0whose results are included from its acquisition date of February 20, 2026<\/a>, revenue grew 4.9% YoY<\/strong><\/span> in constant currency.<\/p>\n

Adjusted EBITDA weighed in at \u20ac636 million ($744.3m)<\/strong> \u2014 a margin of 21.9%<\/strong>.<\/p>\n

Among the highlights\u00a0in UMG’s latest results was the company’s recorded music subscription revenue, which grew\u00a012.5% YoY<\/span><\/strong>\u00a0at constant currency to reach\u00a0\u20ac1.303 billion ($1.52bn)<\/strong> in Q1, benefiting from the consolidation of Downtown and initial pricing benefits from<\/span>\u00a0Streaming 2.0 agreements.<\/p>\n

Physical revenue grew 12.7% YoY<\/strong><\/span> at constant currency to \u20ac310 million ($362.8m)<\/strong>, with particular strength in Japan<\/strong> and the US.<\/strong><\/p>\n

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Photo: Austin Hargrave<\/figcaption><\/figure>

“We continue to build the most successful music company in history by attracting the world’s top talent, engaging fans globally, and delivering long-term value for stakeholders.”<\/p>\n

Sir Lucian Grainge, UMG<\/strong><\/span><\/p><\/blockquote>\n

Commenting on the Q1 earnings announcement, UMG’s Chairman and CEO, Sir Lucian Grainge<\/strong>, said: “We delivered a solid quarter of growth in our core businesses, complemented by our strategic development and investment in fast-growing areas of the industry.<\/p>\n

“We continue to build the most successful music company in history by attracting the world’s top talent, engaging fans globally, and delivering long-term value for stakeholders. Central to that mission is fostering an environment that protects artists and songwriters, champions human creativity, and embraces innovation at a pivotal moment for our industry.”<\/p>\n

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RECORDED MUSIC<\/h6>\n

Universal’s<\/strong> overall Recorded Music revenue for the first quarter of 2026 was \u20ac2.253 billion ($2.64bn)<\/strong>, up 8.9% YoY<\/strong><\/span> at constant currency. Excluding Downtown, Recorded Music revenue grew 5.4% YoY<\/strong><\/span> at constant currency.<\/p>\n

Within the Recorded Music segment, UMG’s ‘Subscription and streaming revenues’ (including ad-supported and subscription streaming revenues) grew 10.9% YoY<\/strong><\/span> at constant currency to \u20ac1.642 billion ($1.92bn)<\/strong>.<\/p>\n

Breaking UMG’s recorded music streaming figure down further reveals that the company’s subscription<\/em> streaming revenues grew 12.5% YoY<\/strong><\/span> at constant currency to reach \u20ac1.303 billion ($1.52bn)<\/strong>. Excluding Downtown, subscription revenue grew 7.9% YoY<\/span><\/strong> at constant currency.<\/p>\n

Universal’s<\/strong> ad-supported recorded music streaming revenue reached \u20ac339 million ($396.7m)<\/strong>, up 5.0% YoY<\/strong><\/span> at constant currency, though the company noted that consumers continue to shift consumption from “better-monetized video platforms to short-form platforms”.<\/p>\n

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Within Universal’s recorded music business, Physical revenue grew 12.7% YoY<\/strong><\/span> at constant currency to \u20ac310 million ($362.8m)<\/strong>, with particular strength in Japan<\/strong> and the U.S.<\/strong><\/p>\n

‘License and other’ revenue decreased 3.6% YoY<\/strong><\/span> at constant currency to \u20ac267 million ($312.5m)<\/strong>, as underlying licensing revenue growth from strong synchronization revenue “was more than offset by meaningful, non-recurring live income in the first quarter of 2025.”<\/p>\n

Downloads and other digital revenue reached \u20ac34 million ($39.8m)<\/strong>, down 5.6% YoY<\/strong><\/span> at constant currency, due to the “continued industry-wide format shift”.<\/p>\n

Top sellers for the quarter included BTS, Olivia Dean, Taylor Swift<\/strong>, the KPop Demon Hunters<\/em> soundtrack and Morgan Wallen<\/strong>.<\/p>\n

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MUSIC PUBLISHING<\/h6>\n

Universal’s<\/strong> overall Music Publishing revenue for the first quarter of 2026 was \u20ac552 million ($645.8m)<\/strong>, up 7.0% YoY<\/span><\/strong> at constant currency. Excluding Downtown, Music Publishing revenue grew 4.3%<\/strong> in constant currency.<\/p>\n

Synchronization revenue grew 15.3% YoY<\/strong><\/span> at constant currency to \u20ac68 million ($79.6m)<\/strong>, driven by stronger advertising, trailers, and motion picture income.<\/p>\n

Performance revenue increased 6.5% YoY<\/strong><\/span> at constant currency to \u20ac115 million ($134.6m)<\/strong>.<\/p>\n

Digital publishing revenue reached \u20ac328 million ($383.9m)<\/strong>, up 4.8% YoY<\/strong><\/span> at constant currency, with UMg citing a “difficult comparison against strong digital growth in the prior-year quarter”.<\/p>\n

Mechanical revenue grew 12.0% YoY<\/strong> <\/span>at constant currency to \u20ac28 million ($32.8m)<\/strong>, partially due to physical strength in Japan<\/strong>.<\/p>\n

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MERCHANDISING AND OTHER<\/h6>\n

UMG’s<\/strong> ‘Merchandising and Other’ revenue in the first quarter of 2026 reached \u20ac101 million ($118.2m)<\/strong>, down 1.9% YoY<\/strong><\/span> at constant currency.<\/p>\n

According to UMG<\/strong>, the decline was driven by lower direct-to-consumer revenue due to the timing of product releases and a decline in retail sales, partially offset by strong growth in touring income driven by tours for Lady Gaga<\/strong>, Conan Gray,<\/strong> and Nine Inch Nails<\/strong>, amongst others.<\/p>\n

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DOWNTOWN<\/h6>\n

Downtown Music Holdings<\/strong> contributed \u20ac86 million ($100.6m)<\/strong> in total revenue from its consolidation date of February 20<\/strong> \u2014 approximately five-and-a-half weeks of the quarter.<\/p>\n

The vast majority of Downtown’s<\/strong> contribution came from Recorded Music, which accounted for \u20ac72 million ($84.3m)<\/strong> of the total. Within that, subscription and streaming revenue reached \u20ac66 million ($77.2m)<\/strong>, of which \u20ac54 million ($63.2m)<\/strong> came from subscription revenue specifically.<\/p>\n

Downtown’s<\/strong> Music Publishing operations contributed \u20ac14 million ($16.4m)<\/strong>, with digital revenue of \u20ac11 million ($12.9m)<\/strong> making up the bulk of the publishing figure.<\/p>\n

Downtown’s<\/strong> Adjusted EBITDA was \u20ac3 million ($3.5m)<\/strong>, an Adjusted EBITDA margin of 3.5%.<\/strong><\/p>\n

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EBITDA ETC.<\/h6>\n

In Q1 2026, UMG’s<\/strong> EBITDA (earnings before interest, taxes, and depreciation) grew 2.1% YoY<\/strong><\/span> at constant currency to \u20ac571 million ($668.2m)<\/strong>.<\/p>\n

EBITDA margin came in at 19.7%<\/strong>, compared to 20.8%<\/strong> in the first quarter of 2025.<\/p>\n

Adjusted EBITDA for Q1 was \u20ac636 million ($744.3m)<\/strong>, up 3.9% YoY<\/strong><\/span> at constant currency. Adjusted EBITDA margin was 21.9%<\/strong>, compared to 22.8%<\/strong> in the first quarter of 2025, with the decline primarily due to the consolidation of Downtown<\/strong>.<\/p>\n

Excluding Downtown, Adjusted EBITDA grew 3.4% YoY<\/strong><\/span> in constant currency.<\/del><\/p>\n

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SHARE BUYBACK AND SPOTIFY STAKE<\/h6>\n

Alongside its Q1 results, UMG<\/strong> announced that its Board has increased the size of its share buyback authorization to \u20ac1 billion ($1.17bn)<\/strong>.<\/p>\n

When UMG completes its \u20ac500 million share buyback program announced in March<\/a>, it intends to initiate another buyback program for the incremental \u20ac500 million<\/strong>, subject to market conditions and shareholder approval at UMG’s 2026 Annual General Meeting on May 13<\/strong>.<\/p>\n

As first reported by MBW<\/a> earlier today, UMG also confirmed that, in March 2026, its Board authorized the monetization of half of its equity stake in Spotify<\/strong>.<\/p>\n

The announcement comes against the backdrop of Bill Ackman’s<\/strong> Pershing Square<\/strong> having submitted a non-binding proposal to acquire UMG in a deal valued at approximately $64 billion<\/a> earlier this month, a bid which itself proposed the sale of UMG’s full Spotify<\/strong> stake to help fund its cash component.<\/p>\n

“Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future.”<\/p>\n

Matt Ellis<\/strong>, UMG<\/span><\/p><\/blockquote>\n

Matt Ellis<\/strong>, UMG’s CFO, said: “Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future.<\/p>\n

“In addition, the important steps we are announcing today to increase our share buyback authorization and monetize a portion of our equity stake in Spotify will lead to enhanced shareholder value while maintaining the flexibility the Company requires to drive further success.”<\/p>\n

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All EUR-USD conversions made at the average Q1 2026 exchange rate published by the European Central Bank.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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