Income $3.38B in Q2 on Subscription Positive factors

Buoyed by hits by Morgan Wallen and Sabrina Carpenter, Common Music Group (UMG) had income of two.98 billion euros ($3.38 billion) within the second quarter, up 4.5% in fixed foreign money, which removes the results of overseas change modifications. On a reported foundation, which takes overseas change under consideration, income was up 1.6%.

Adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA), a standard measure of profitability that removes some non-operational bills, rose 7.3% in fixed foreign money (4.2% as reported) to 676 million euros ($766 million). Adjusted EBITDA margin rose to 22.7% from 22.1%.

“We’re happy with the sturdy development in subscription, advert supported [streaming] and music publishing income, which greater than offset notably troublesome comparisons in bodily and merchandising income,” COO Boyd Muir mentioned throughout the earnings name on Thursday (July 31).

In UMG’s recorded music section, second quarter income grew 3.9% (1.1% as reported) to 2.22 billion euros ($2.5 billion). Subscription income of 1.2 billion euros ($1.36 billion) was up 8.5% (5.3% as reported), placing UMG according to its focused subscription development fee of 8 to 10%. In line with Muir, the development was pushed primarily by the expansion within the variety of subscribers in established markets together with the U.S. and Japan which have comparatively excessive common income per consumer. Worth will increase, he added, performed “a a lot lesser” position.   

Streaming income, which incorporates ad-supported royalties, rose 9.1% (4.4% as reported) to 358 million euros ($406 million). Muir attributed the development to “modest, incremental enhancements in account efficiency and monetization throughout most of our main partnerships.” The development additionally displays the timing of licensing offers. Meta stopped licensing premium music movies in Could 2023, which created a difficult comparable within the second quarter of 2024. Additionally, UMG was off TikTok for a month till a May 2024 licensing deal ended a three-month standoff, which gave UMG a neater comparability within the second quarter of 2025.

Recorded music income took successful from a 12.4% drop (13.2% as reported) in bodily income, to 310 million euros ($351 million). UMG attributed the decline to a troublesome comparable quarter because of final yr’s launch schedule. License and different income dropped 6.5% (7.9% as reported) to 290 million euros ($329 million).

Music publishing income jumped 14.5% in fixed foreign money (11.5% as reported) to 570 million euros ($646 million). Digital income climbed 16.2% (12.9% as reported) because of development in streaming and subscription income. Efficiency income elevated 13.3% (11.0% as reported) and sync income climbed 11.9% (8.2% as reported). Each mechanical and different income improved 7.7% (each in fixed foreign money and as reported). “The sturdy [publishing] development additionally displays the Chord [Music Partners] administration enterprise, in addition to our continued success in rising our movie and TV administration enterprise,” mentioned Muir.

Merchandising and different income fell 12.7% (15.4% as reported) to 192 million euros ($218 million). The decline stemmed from a difficult comparability within the prior-year quarter when Taylor Swift drove direct-to-consumer (DTC) gross sales. Muir additionally pointed to increased manufacturing and freight prices because of each product combine and better tariffs. “We’re taking a number of steps to enhance the profitability of our merchandising enterprise, together with investing in our DTC enterprise and dealing on methods to reconfigure our manufacturing provide chain,” he mentioned.

Abstract of UMG’s Q2 outcomes (development figures in fixed foreign money):