Reuters.com
Universal Music Group delivered a steady first quarter, reporting €2.9 billion ($3.3 billion) in revenue, as strong global demand, boosted in part by a major release from BTS.
While headline revenue remained flat year-over-year, the company emphasized its performance in constant currency, where revenue rose 8.1%. Profitability told a similar story: reported EBITDA dipped, but adjusted for exchange rates, both EBITDA and adjusted EBITDA posted gains, marking what CEO Lucian Grainge described as the company’s 19th consecutive quarter of growth on that basis.
Grainge pointed to the unpredictable nature of release cycles as a key factor, noting that artist timelines rarely align neatly with quarterly expectations. In other words, a lighter slate this quarter doesn’t reflect underlying weakness so much as timing.
Beyond earnings, UMG’s broader financial strategy took center stage. The company confirmed plans to double its share buyback program to €1 billion while also moving forward with the sale of roughly half its stake in Spotify. The proceeds will be split between shareholder returns and artist payouts, continuing a policy that ensures musicians benefit directly from such transactions.
The decision comes amid ongoing pressure from Bill Ackman and his firm, Pershing Square Capital Management, which recently proposed a sweeping acquisition that would involve fully offloading UMG’s Spotify holdings. While the board has yet to rule on that bid, UMG’s partial sale suggests a more measured approach to unlocking value.
Operationally, the company’s core recorded music division showed resilience, with subscription and physical sales driving growth despite declines in licensing and download revenue. Publishing revenues also held firm, supported by gains in performance and synchronization income.
The quarter also marked the first reporting period incorporating Downtown Music Holdings into UMG’s Virgin Music Group, adding another layer to the company’s evolving structure.
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