Announces Authorizations for Additional Share Buyback and Monetization of a Portion of Spotify Stake
Q1 2026 Results Highlights1
- Revenue of €2,900 million was flat year-over-year, while it grew 8.1% in constant currency, with the consolidation of Downtown Music Holdings (“Downtown”), initial pricing benefits of Streaming 2.0 agreements, strong physical sales and healthy synchronization income contributing to growth in Recorded Music and Music Publishing.
- Recorded Music subscription revenue grew 4.1% year-over-year, or 12.5% in constant currency, benefitting from the consolidation of Downtown, as well as from initial pricing benefits of Streaming 2.0 agreements.
- Adjusted EBITDA of €636 million declined 3.8% year-over-year, and increased 3.9% in constant currency driven by revenue growth, while Adjusted EBITDA margin decreased 0.9pp to 21.9%, primarily due to the consolidation of Downtown.
- Top sellers included BTS, Olivia Dean, Taylor Swift, the KPop Demon Hunters soundtrack and Morgan Wallen.
- Closing of Downtown acquisition provides UMG with capabilities and infrastructure to deliver further growth in the fast-growing label and artist services sector.
|
1 |
This press release includes certain alternative performance indicators which are not defined in the IFRS Accounting Standards (‘IFRS’) issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release. |
HILVERSUM, The Netherlands, April 29, 2026 /PRNewswire/ — Universal Music Group N.V. (“UMG” or “the Company”) today announced its financial results for the first quarter ended March 31, 2026.
Sir Lucian Grainge, Chairman and Chief Executive Officer of UMG, 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. 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.”
Matt Ellis, 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. 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.”
UMG Results
|
Three Months Ended March 31, |
% |
% |
% |
|||
|
(in millions of euros) |
20261 |
2026 excl. |
2025 |
YoY |
const. |
const. excl. |
|
(unaudited) |
(unaudited) |
(unaudited) |
||||
|
Revenue |
2,900 |
2,814 |
2,901 |
0.0 % |
8.1 % |
4.9 % |
|
EBITDA |
571 |
568 |
603 |
(5.3 %) |
2.1 % |
1.6 % |
|
EBITDA margin |
19.7 % |
20.2 % |
20.8 % |
(1.1pp) |
(0.6pp) |
|
|
Adjusted EBITDA |
636 |
633 |
661 |
(3.8 %) |
3.9 % |
3.4 % |
|
Adjusted EBITDA margin |
21.9 % |
22.5 % |
22.8 % |
(0.9pp) |
(0.3pp) |
|
|
1 |
Downtown results included are from the date of acquisition on February 20, 2026. |
|
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. Constant currency is calculated by taking current year results and comparing against prior year results restated at current year rates. |
Q1 2026 Results
Revenue for the first quarter of 2026 grew 8.1% in constant currency, with the consolidation of Downtown as of February 20, 2026. Excluding Downtown, revenue grew 4.9% in constant currency with improvement in Recorded Music and Music Publishing due to:
- Initial pricing benefits of Streaming 2.0 agreements;
- Strong physical sales; and
- Healthy synchronization income.
Adjusted EBITDA grew 3.9% in constant currency. Excluding Downtown, Adjusted EBITDA grew 3.4% in constant currency and Adjusted EBITDA margin declined 0.3pp year-over-year due to:
- Improvement in Music Publishing margin and flat Recorded Music margin;
- An increase in corporate overhead, largely associated with strategic technology initiatives; and
- Lower margins in Merchandising.
Recorded Music
|
Three Months Ended March 31, |
% |
% |
% |
|||
|
(in millions of euros) |
20261 |
2026 excl. |
2025 |
YoY |
const. |
const. excl. |
|
(unaudited) |
(unaudited) |
(unaudited) |
||||
|
Subscriptions and streaming revenue |
1,642 |
1,576 |
1,605 |
2.3 % |
10.9 % |
6.4 % |
|
of which subscription |
1,303 |
1,249 |
1,252 |
4.1 % |
12.5 % |
7.9 % |
|
of which streaming |
339 |
327 |
353 |
(4.0 %) |
5.0 % |
1.2 % |
|
Downloads and other digital revenue |
34 |
32 |
40 |
(15.0 %) |
(5.6 %) |
(11.1 %) |
|
Physical revenue |
310 |
310 |
300 |
3.3 % |
12.7 % |
12.7 % |
|
License and other revenue |
267 |
263 |
296 |
(9.8 %) |
(3.6 %) |
(5.1 %) |
|
Recorded Music revenues |
2,253 |
2,181 |
2,241 |
0.5 % |
8.9 % |
5.4 % |
|
EBITDA |
525 |
521 |
538 |
(2.4 %) |
5.2 % |
4.4 % |
|
EBITDA margin |
23.3 % |
23.9 % |
24.0 % |
(0.7pp) |
(0.1pp) |
|
|
Adjusted EBITDA |
565 |
561 |
575 |
(1.7 %) |
6.0 % |
5.3 % |
|
Adjusted EBITDA margin |
25.1 % |
25.7 % |
25.7 % |
(0.6pp) |
0.0pp |
|
|
1 Downtown results included are from the date of acquisition on February 20, 2026. |
|
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. |
Q1 2026
Recorded Music revenue grew 8.9% in constant currency, and grew 5.4% in constant currency excluding Downtown:
- Subscription revenue grew 12.5% in constant currency, and grew 7.9% in constant currency excluding Downtown. Wholesale price increases contributed 3pp to the growth rate, partially offset by a 2pp negative impact from a light release schedule which led to lower market share against strong market share in the prior-year quarter.
- Streaming revenue increased 5.0% in constant currency, and grew 1.2% in constant currency excluding Downtown, as consumers continue to shift consumption from better monetized video platforms to short-form platforms.
- Downloads and other digital revenue declined 5.6% in constant currency, and declined 11.1% in constant currency excluding Downtown, due to continued industry-wide format shift.
- Physical revenue increased 12.7% in constant currency, both with and excluding Downtown, with particular strength in Japan and the U.S.
- License and other revenue decreased 3.6% in constant currency, and declined 5.1% in constant currency excluding Downtown, 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.
Recorded Music Adjusted EBITDA was up 6.0% in constant currency, and grew 5.3% in constant currency excluding Downtown, while Adjusted EBITDA margin was flat excluding Downtown, reflecting:
- Operating …