Universal Music Group has announced its financial results for the third quarter covering the three months to September 30, 2025.
Revenue for the third quarter of 2025 was €3.02 billion, an increase of 10.2% year-on-year in constant currency (all figures quoted will be in constant currency). For the nine months ending on September 30, 2025, revenue of €8.9bn represented an 8.0% year-on-year increase.
"As we position the company for long-term value creation, we continued to achieve strong results this quarter,” said Sir Lucian Grainge, UMG’s chairman and CEO. "Importantly, we continued to drive progress on our strategic plans, including our artists' and songwriters' creative and commercial success, our global expansion, the industry's embrace of our responsible AI initiatives and the continued implementation of Streaming 2.0.”
Matt Ellis, UMG’s CFO, added: “We’re pleased that our strong quarter was driven by healthy results across all segments of our business: recorded music, music publishing and merchandising. Our double-digit growth in both revenue and adjusted EBITDA is a reflection of the breadth and depth of our global roster, the strength of our partnerships, and the consistent execution on our strategic plan.”
During Q3, recorded music revenue was up 8.3% year-on-year to €2.22bn. Subscription revenue grew 8.7% year-on-year, driven primarily by the growth in global subscribers. Streaming (non-subscription ad-funded) revenue was in line with the prior-year quarter in constant currency, as consumption continues to shift from better monetised video platforms to short-form platforms.
Physical revenue increased 23.1% year-on-year in constant currency, driven by initial shipments of Taylor Swift's The Life Of A Showgirl (released at the beginning of Q4) and the strength of new releases, particularly in Japan. License and other revenue increased 4.1% in constant currency, due to improvements in live income.
Top sellers for the quarter included the K-pop Demon Hunters soundtrack, Mrs Green Apple, Taylor Swift, Sabrina Carpenter and Morgan Wallen.
As we position the company for long-term value creation, we continued to achieve strong results this quarter
Sir Lucian Grainge
For the nine months ending September 30, 2025, recorded music revenue was €6.69bn, up 7.4% year-on-year. Subscription revenue was up 8.9% to €3.63bn, while (ad-funded) streaming revenue increased by 3% year-on-year to €1.048bn. Physical revenue increased 6.7% in constant currency. License and other revenue improved 7.3%.
Top sellers for the nine months included Morgan Wallen, Lady Gaga, Sabrina Carpenter, Kendrick Lamar and Mrs Green Apple.
Music publishing revenue of €543 million in the third quarter of 2025 represented an increase of 13.6% year-on-year. For the nine months, publishing revenue was up 12.5% year-on-year to €1.67bn.
Merchandising and other revenue for the third quarter of 2025 was €259 million, an increase of 15.6% year-on-year. The result was driven by higher touring merchandise sales.
However, the nine-month result showed growth was flat for merchandising and other revenue at €563m. Growth in touring merchandise sales was offset by a decline in direct-to-consumer sales.
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