Overview
- UMG reported third-quarter revenue of €3,394 million, up 12.3% year‑over‑year and adjusted EBITDA growth of 9.0% in constant currency with a 22.4% adjusted EBITDA margin.
- Recorded Music led the quarter with subscription revenue rising 19.2% in constant currency and recorded music revenue up 14.7% driven by higher wholesale prices, subscriber gains, and better per‑play rates from digital partners.
- The Downtown acquisition materially contributed to results while comparable metrics excluding Downtown show revenue growth of 5.3% in constant currency and confirm management is consolidating the business into UMG’s services and label operations.
- Music Publishing posted 7.5% revenue growth but saw adjusted EBITDA decline and margin compression, and Merchandising and Other revenue fell 4.6% with adjusted EBITDA down to €11 million largely because touring income was weaker than the prior-year quarter.
- Physical sales rose 17.4% across North America, Japan and Europe, and UMG says its mix of pricing, artist investment, and efficiency efforts could lift long‑term margins although results will depend on successful Downtown integration and the lumpy timing of tour activity.