Universal Music Group has reported its financial results for 2024.
Revenue of €11.83 billion represented a year-on-year increase of 7.6% in constant currency, driven by growth across all segments (all figures will be stated in constant currency).
Recorded Music subscription revenue grew 9.1% year-on-year, while streaming revenue (ad-funded) edged up 0.1%. Physical revenue grew 1.1%.
Adjusted EBITDA was up 13.8% year-on-year to €2.66bn.
Top sellers for the year included multiple albums from Taylor Swift, as well as albums from Billie Eilish, Sabrina Carpenter, Morgan Wallen and Chappell Roan
UMG had nine of the Top 10 on the IFPI Global Artist Chart, as well as the two biggest artist breakthroughs in the world in Sabrina Carpenter and Chappell Roan. The major had six of the Top 10 global artists on Spotify, as well as six of the Top 10 most streamed songs globally on Apple Music.
Music Publishing revenue at UMPG in 2024 was up 9.0% year-on-year to €2.12bn.
2024 was a year distinguished by the exceptional performance of our artists and songwriters and significant progress on our strategic initiatives
Sir Lucian Grainge
During Q4, UMG revenue increased 7.9% to €3.439bn, driven by growth across all segments. Excluding items impacting comparability, revenue grew 6.1%.
Recorded Music subscription revenue in Q4 grew 9.0%, while streaming revenue (ad-funded) declined 4.1%. Excluding an item impacting comparability, subscription revenue grew 7.2%.
The decline in streaming revenue (ad-funded) resulted from consumption continuing to shift from better monetised video platforms to short-form platforms.
Q4 physical revenue grew 3.4% year-on-year in constant currency, driven primarily by strong releases in Japan, which more than offset a tougher market in the US and Europe.
Adjusted EBITDA of €799m represented a 19.1% year-on-year increase.
Top sellers in Q4 included Taylor Swift, Sabrina Carpenter, Billie Eilish, Chappell Roan and Wicked: The Soundtrack.
Music Publishing revenue in the fourth quarter of 2024 was €613m, up 7.0%.
“2024 was a year distinguished by the exceptional performance of our artists and songwriters and significant progress on our strategic initiatives,” said Sir Lucian Grainge, UMG’s Chairman and CEO. “Our industry-leading investment in talent continued to produce spectacular results, both from global superstars, as well as developing artists from around the world. We continue to create value for both our artists and shareholders by advancing our artist-centric strategy, ushering the next evolution of streaming – 'Streaming 2.0’ and advancing a responsible and effective approach to AI.”
Boyd Muir, COO and CFO of UMG, said: “Our artist investment has translated into continued strong financial performance in 2024, with healthy growth on both the top and bottom line. We continue to strategically reinvest in the business, while returning cash to our shareholders through meaningful dividends, and are well positioned to meet the growth targets laid out at our recent Capital Markets Day."
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