UMG hits record €11.83 bn revenue in 2024, streaming & artist growth fuel the Surge

Universal Music Group N.V. has announced its financial results for the fourth quarter and full year ended December 31, 2024, showcasing robust growth in revenue and adjusted EBITDA, fueled by the continued success of its artists and strategic initiatives.

Financial Highlights:

Full-Year Revenue: €11.834 billion, a 6.5% increase year-over-year (7.6% in constant currency).
Full-Year Adjusted EBITDA: €2.661 billion, a 12.3% increase year-over-year (13.8% in constant currency).
Recorded Music Subscription Revenue: Grew 8.2% year-over-year (9.1% in constant currency).
Proposed Dividend: €0.52 per share for 2024, subject to shareholder approval.
Top Selling Artists: Taylor Swift, Sabrina Carpenter, Billie Eilish, Chappell Roan.

Key Drivers of Growth:

UMG's strong performance was driven by several factors, including:

Global Artist Success: The company highlighted the exceptional performance of its artists, with nine of the top 10 on the IFPI Global Artist Chart, including breakout artists like Sabrina Carpenter and Chappell Roan.
Streaming 2.0 Initiative: UMG introduced "Streaming 2.0," a new era of innovation focused on consumer segmentation, geographic expansion, and increased value for subscribers.
Strategic Investments: The company continued to invest in high-growth music markets and local repertoire, including investments in Mavin Global (Nigeria), RS Group (Thailand), and Outdustry (China/India).
Expansion of Artist and Label Services: UMG acquired the remaining share of [PIAS] and announced an agreement to acquire Downtown Music Holdings, further solidifying its position in the artist and label services sector.
Responsible AI Initiatives: UMG emphasized its commitment to responsible AI development, forming strategic collaborations and publishing principles for music creation with AI.

Segment Performance:

Recorded Music: Revenue increased by 5.2% (6.4% in constant currency), driven by strong subscription growth.
Music Publishing: Revenue grew by 8.4% (9.0% in constant currency), fueled by continued growth in subscription and streaming revenue.
Merchandising and Other: Revenue increased by 19.3%, driven by growth in direct-to-consumer and touring merchandise sales.

UMG's leadership expressed confidence in the company's future growth prospects, citing its strong artist roster, strategic initiatives, and commitment to innovation. The company will continue to focus on expanding its global reach, investing in new technologies, and delivering value to its artists and shareholders.

"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."

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