UMG reports $3.3b revenue in Q1 2025 as subscription streaming grows

The earnings report, released on 29 April, revealed that recorded music revenue reached approximately $2.55 billion, up 12.7% from the same period last year. Of that, $1.83 billion was generated from streaming, representing a 9.5% year-on-year rise.

Subscription streaming accounted for $1.42 billion, while ad-supported streaming contributed $402.15 million, up 2.9% year-on-year.

Despite concerns about a plateau in the streaming market, UMG’s performance suggests continued growth, particularly amid ongoing price increases and the company’s artist-focused monetisation strategy. The major label highlighted “double-digit revenue growth from four of our major DSP partners” during the quarter. Chief digital officer Michael Nash said three of the top five digital service providers posted double-digit gains.

Significant growth was also recorded in international subscription markets, with Japan, Germany, China, and Mexico all achieving double-digit increases. These countries are now among UMG’s top 10 markets by subscription revenue.

On the recorded music front, revenue from permanent downloads declined 13% year-on-year to $45.56 million. In contrast, physical sales—mainly vinyl and other formats—rose by 17.6% to $341.77 million, and licensing revenue increased by 33.3% to $337.19 million, supported by a rise in sync deals and “strong live income in certain markets”.

Key artists contributing to Q1 sales included Kendrick Lamar, Sabrina Carpenter, Lady Gaga, The Weeknd, and Mrs. Green Apple.

However, merchandise revenue declined slightly to $127.56 million, a 1.8% decrease year-on-year, despite the noted growth in live income.

In publishing, UMG reported revenue of $632.22 million, reflecting an 11.9% year-on-year increase. The strongest gains were in digital publishing, up 19.4% to $386.11 million. Performance royalties remained flat at $129.84 million, while other segments experienced modest growth.

Overall, UMG posted an adjusted EBITDA of $752.78 million for the quarter, an 11.8% increase compared to Q1 2024.

Despite the solid performance, shares in UMG (traded on Euronext Amsterdam) dipped slightly to $28.48 during Thursday’s session.

Executives also reaffirmed plans for further “strategic organisational redesign” in 2025, with expected restructuring costs of $142.26 million.

During the earnings call, company leaders highlighted Spotify’s favourable remarks on a forthcoming “Super-Premium” subscription tier, downplaying recent reports suggesting the platform’s waning interest in the offering.