30 Apr Universal Music Group Q1 2025 Revenue Rises to $3.05B on Streaming Growth

Universal Music Group (UMG) has reported a robust start to 2025, with Q1 revenues reaching €2.901 billion ($3.052 billion), marking a 9.5% year-over-year increase at constant currency. This growth was driven by strong performances across recorded music, publishing, and strategic digital initiatives.​

Recorded Music Performance

UMG’s recorded music segment generated €2.241 billion ($2.358 billion) in Q1, a 10.3% increase year-over-year at constant currency. Subscription streaming revenues grew by 9.3% to €1.252 billion ($1.317 billion), reflecting a global increase in subscribers. Ad-supported streaming revenues saw a modest rise of 0.3% to €353 million ($371.46 million), indicating challenges in monetizing short-form content platforms.​

Physical music sales experienced a significant uptick, increasing by 15.4% to €300 million ($315.69 million), driven by vinyl sales in the U.S. and Europe. Licensing and other revenues rose by 29.8% to €296 million ($311.48 million), bolstered by strong live income and synchronization deals. Top-performing artists included Kendrick Lamar, Sabrina Carpenter, Lady Gaga, The Weeknd, and Mrs. GREEN APPLE.​

Music Publishing Growth

Universal Music Publishing Group reported revenues of €555 million ($584.02 million), up 9.5% year-over-year at constant currency. Digital revenues increased by 16.9% to €339 million ($356.72 million), driven by continued growth in streaming and subscription services. Performance revenues declined by 1.7% to €114 million ($119.96 million), due to comparisons with higher society payments and live activity in the prior year. Synchronization revenues remained flat at €64 million ($67.34 million), while mechanical revenues grew by 4% to €26 million ($27.35 million).​

Merchandising and Other Revenue

The Merchandising and Other segment generated €112 million ($117.85 million), a 5.1% decrease year-over-year at constant currency. UMG attributed this decline to timing-related decreases in touring merchandise sales, partially offset by growth in direct-to-consumer sales.​

Profitability Metrics

UMG’s EBITDA for Q1 2025 increased by 21.6% to €603 million ($634.53 million), with an EBITDA margin of 20.8%, up from 18.9% in Q1 2024. Adjusted EBITDA rose by 10% to €661 million ($695.57 million), maintaining a consistent margin of 22.8%.​Investing.com

Strategic Outlook

UMG’s “Streaming 2.0” strategy, involving partnerships with platforms like Spotify and Amazon, aims to enhance personalization, introduce new premium tiers, and deepen engagement with superfans. This initiative contributed to a 9.5% increase in streaming and subscription revenue, totaling €1.60 billion.​Reuters

Chairman and CEO Sir Lucian Grainge stated, “Our strong results—and our confidence about the future—reflect the execution of our strategic plan, including consistently developing and breaking the world’s most successful artists and songwriters by connecting them with billions of fans in new and innovative ways.”​

UMG’s diversified revenue streams and strategic initiatives position the company for continued growth in the evolving music industry landscape.