Subscription streaming beat forecasts, and UMG’s shares jumped nearly 8% the next day.
Universal Music Group reported revenue of €3.394 billion (about $3.90 billion) for the third quarter, up 11.7% at constant currency, Music Business Worldwide reports. A large part of the growth came from consolidating Downtown Music. Without it, revenue grew 5.3%.
Subscription streaming revenue rose 19.2% to €1.422 billion, or 9.5% without Downtown, ahead of analyst forecasts. UMG credited higher wholesale prices, subscriber growth and its “Streaming 2.0” agreements with platforms. Ad-supported streaming grew 13.5% to €387 million, physical sales rose 17.4% to €392 million, and publishing revenue increased 7.5% to €590 million.
Adjusted EBITDA rose 9% to €729 million. UMG’s shares closed up 7.9% at €17.09 on Oct. 30, the day after the results, MBW reported.
On the earnings call, chairman and CEO Lucian Grainge spoke at length about AI-generated tracks flooding streaming services. “The volume is growing faster than the safeguards,” he said, according to Music Week. “AI slop degrades the fan experience and diverts value from artists.”
Grainge said more than 90,000 fully AI-generated tracks are now uploaded every day, up from about 10,000 in early 2025.
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