Universal Music Group Q3 Revenue Climbs 12.3% to €3.39 Billion on Subscription, Physical Sales Growth

Universal Music Group N.V. (UMG) reported third-quarter revenue of €3.39 billion, up 12.3% from €3.02 billion a year earlier, driven by subscription growth, physical music sales and contributions from its Downtown acquisition. Revenue grew 11.7% at constant currency, while growth excluding Downtown was 5.3%. Adjusted EBITDA rose 9.8% to €729 million from €664 million, with constant-currency growth of 9.0%. The adjusted EBITDA margin declined to 21.5% from 22.0% on the Downtown acquisition, but expanded 0.4 percentage points to 22.4% excluding it. Recorded Music revenue grew 15.1% to €2.56 billion, supported by a 20.7% rise in subscription revenue and a 15% increase in physical sales. Music Publishing revenue advanced 8.7% to €590 million, while Merchandising and Other revenue fell 4.2% to €248 million. For the first nine months, revenue increased 7.7% to €9.59 billion, while adjusted EBITDA rose 2% to €2.04 billion.