UMG announces $575m share buyback programme

The company said the programme will be carried out by an independent broker and may be adjusted, suspended or discontinued at any time. The repurchases will be conducted in line with European market regulations, including the Market Abuse Regulation.

UMG said the move reflects confidence in its long-term strategy and financial position. Chief financial officer Matt Ellis stated: “Since our transition to a public company, we have consistently delivered sustained growth, strong financial results and strategic leadership, establishing a robust foundation for long-term value creation.”

Ellis added that the company believes its current market valuation does not fully reflect its performance. “We currently see a meaningful dislocation in UMG’s market valuation. Our strong balance sheet and cash generation gives us the flexibility to repurchase shares, while preserving ample capacity to invest in our growth strategy, and reconfirming our commitment to maintaining our credit ratings and our dividend policy,” he said.

The company intends to use the repurchased shares to meet obligations under its 2022 global equity plan and potentially to reduce its share capital. UMG confirmed that the maximum number of shares allocated to the equity plan will remain unchanged.

The buyback will be executed under the authority granted by shareholders at the company’s annual general meeting held on 14 May 2025, as well as any future approvals.

UMG, which has been listed on the Euronext Amsterdam since September 2021, said it would provide regular updates on the programme’s progress.

The announcement follows the company’s latest financial results for the fourth quarter and full year ending 31 December 2025. UMG reported quarterly revenues of €3.605 billion, representing a 10.6% increase year-on-year at constant currency. Adjusted EBITDA for the quarter was €810 million, with a margin of 22.5%.

Growth in the recorded music division was driven in part by subscription streaming, which rose 7.7% year-on-year to €1.257 billion. Physical sales also increased, up 21.3% to €524 million, supported by demand for vinyl in the United States and Europe.

Among the top-selling artists during the quarter were Taylor Swift, Olivia Dean, Stray Kids and Morgan Wallen.

The buyback announcement comes shortly after UMG confirmed it had paused plans for a secondary listing in the United States, citing market volatility and valuation concerns.

UMG shares closed at €15.555 on 27 March on Euronext Amsterdam. The stock has declined by around 29% since the start of the year but rose more than 4% in early trading following the buyback announcement, valuing the company at approximately €29.8 billion.