Universal Music generated $3.15 billion in revenue in the second quarter, driven by top-selling musicians such as Taylor Swift, Billie Eilish, and SEVENTEEN
MBW’s Stats of the Week is a collection through which we spotlight an information level worthy of the worldwide music business’s consideration. This week’s statistics are powered by music information analytics firm Chartmetric.
Common Music Group reported second-quarter and first-half monetary outcomes.
The highest statistic from the world’s largest music rights firm’s second-quarter outcomes (the three months to the top of June): Common Music Group (UMG) income was 2.932 billion euros Covers all its sectors (together with recorded music, publishing, and so on.).
UMG’s second quarter income figures translate to US$3.15 billion Calculated based mostly on the quarterly common change charge printed by the European Central Financial institution, Annual improve of 9.6% Calculated at a set change charge.
Commenting on the outcomes, Sir Lucian Grainge, Chairman and Chief Government Officer of UMG, mentioned: “Our continued robust income progress throughout the quarter demonstrates that, by design, we’re a diversified music leisure firm that places our artists on the forefront of our The middle of every part you do.
Photograph credit score: Sthanlee B. Mirador/Sipa USA/Alamy
“Our continued robust income progress throughout the quarter demonstrates that we’re, by design, a various music leisure firm that places our artists on the heart of every part we do.”
Sir Lucian Grange
He added: “Our distinctive construction is each progressive and evolving, permitting us to help our recording artists and songwriters with ever-expanding income streams and thru new merchandise and thrilling streaming providers. Stage one growth is enhanced.
Different highlights from UMG’s second quarter embrace Annual progress of 6.9% The corporate’s subscription streaming income surges Annual improve of 14.4% a rise within the company entity’s income, and Annual improve of 43.7% Progress of the “Merchandise & Others” income phase.
recorded music
Common’s complete recorded music income (together with streaming media and bodily music, and so on.) within the second quarter of 2024 is 2.2 billion euros ($2.368 billion), up 6.8%Yr-on-year Calculated at mounted change charges (see beneath).
In recorded music, UMG’s “subscription and streaming income” (together with ad-supported and subscription streaming income) grew 4.1% in contrast with the identical interval final yrCalculated at mounted change charge €1.480 billion (US$1.593 billion).
Detailed evaluation of UMG’s recorded music streaming information additional demonstrates that the corporate’s subscription Streaming income progress Annual progress of 6.9% Calculated at mounted change charge 1.137 billion euros ($1.224 billion).
UMG mentioned the expansion was “primarily resulting from international person progress and the affect of sure worth will increase.”
Proof of worldwide person progress arrived yesterday. Spotify, the world’s largest subscription music streaming service, reported yesterday (July 23) that it has added 7 mega Premium subscriber numbers for the second quarter ended the quarter with a world premium subscriber base of 246 million Paying customers.
On the similar time, the value will increase talked about by UMG might also refer to cost will increase applied by corporations comparable to Spotify, which final July elevated the value of its flagship subscription in a number of areas together with the USA and the UK for the primary time in its 15-year historical past. Lower than a yr later, it once more raised subscription costs in key mature markets comparable to the USA and the UK.
In the meantime, Common’s ad-supported recorded music streaming income fell Annual progress of three.9% Calculated at mounted change charge 343 million euros ($369.3 million), which, in line with UMG, was resulting from “slower progress amongst primarily advertising-based platform companions and funding shortfalls associated to deal renewal timing for sure platforms.”
Bodily income surges in Common Music Group’s music enterprise Annual improve of 14.4% Calculated at mounted change charge €357 million ($384.38 million). Common Music Group attributed the expansion to “favorable launch schedules driving vinyl gross sales within the U.S. and Europe” and mentioned it “greater than offset the difficulties in comparison with final yr’s robust CD gross sales in Japan.”
Common Music Group’s recorded music enterprise sees ‘licensing and different’ income develop 18% annual improve Primarily based on reporting forex and glued forex. UMG reported that the expansion was “resulting from improved synchronization income, greater stay and audiovisual manufacturing income and a rise in direct-to-consumer associated actions.”
This season’s best-selling merchandise embrace Taylor Swift, Billie Eilish, SEVENTEEN, Morgan Wallen and Pooh! groupwhereas the best-selling merchandise throughout the identical interval final yr included King & Prince, Morgan Wallen, SEVENTEEN, Taylor Swift and Stray Children.
music publishing
Elsewhere, Common Footage’ music publishing arm, Common Music Publishing Groupthe income generated is 511 million euros Second quarter ($550.19 million), up10.4%Yr-on-year Calculated at mounted change charges (see beneath).
In music publishing, digital income reached €311 million ($334.85 million), up 17.4%Yr-on-year On a relentless forex foundation, UMG mentioned this was pushed by “progress in streaming and subscription income and progress in transaction alternatives.”
Synchronized income progress Annual improve of 1.7% Yr-over-year ends in reporting forex and fixed forex.
In the meantime, equipment income fell Annual progress of 10.3% UMG mentioned in Tuesday’s submitting that it was “calculated at a relentless change charge because of the business’s continued shift to digital codecs.”
Advertising and others
Merchandise gross sales and different income within the second quarter of 2024 will attain 227 million euros ($244.41 million),elevated Annual improve of 43.7% Calculated at a set change charge.
UMG reported that the expansion was pushed by “progress in direct-to-consumer gross sales and elevated touring merchandise gross sales resulting from robust touring exercise throughout the interval.”
Curiosity, tax, depreciation and amortization advance revenue, and so on.
Q2 2024, UMG Curiosity, tax, depreciation and amortization advance revenue (earnings earlier than curiosity, taxes, depreciation) progress Annual improve of 17.4%Calculated at mounted change charge 580 million euros ($624.48 million).
EBITDA margin is 19.8%in comparison with 18.7% Season 2, 2023.
UMG famous within the submitting that EBITDA and EBITDA margin have been impacted by non-cash stock-based wage bills of €69 million within the second quarter of 2024, in contrast with €85 million within the second quarter of 2023.
Excluding these non-cash share-based compensation bills, UMG’s Adjusted advance revenue after curiosity, tax, depreciation and amortization The second season is €649 million ($698.77 million), up Annual improve of 11.3% Calculated at a set change charge.
On the similar time, as will be seen from the desk above, UMG’s adjusted EBITDA margin expanded by 0.2 proportion factors to 22.1% Season 2 2024 with 21.9% Common famous that “income progress and price financial savings ensuing from the beforehand introduced strategic organizational redesign have been partially offset by an unfavorable affect on the income combine ensuing from a rise within the proportion of merchandise gross sales and bodily gross sales.”
“We are going to proceed to spend money on the expansion we’re seeing as we execute on our long-term strategic plan.”
Boyd Muir, UMG
Boyd Muir, UMG govt vp, chief monetary officer and president of operations, added: “Our various income streams throughout rising and mature companies positioned us to as soon as once more obtain high-single-digit income progress and double-digit adjusted EBITDA progress throughout the quarter. .
“We are going to proceed to spend money on the expansion we’re seeing as we execute on our long-term strategic plan.”
All references to year-over-year percentages on this report, whether or not explicitly said or not, are calculated at fixed change charges. All EURUSD change charges for Q2 2024 on this report are based mostly on the typical present quarterly change charge decided by the European Central Financial institution.
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