UMG Q1 EARNINGS: DOUBLE-DIGIT GROWTH IN SUBS, STREAMING REVENUE

UMG's 2024 Q1 results show that revenue increased nearly 8% year over year, driven by double-digit increases in subscription revenue (12.5%) and streaming revenue (10.3%). Publishing revenue grew 18% year over year in constant currency. Overall revenue for UMG's Q1 was $2.77b (figures reflect conversion from euros to U.S. dollars).

Top sellers in Q1 included Taylor Swift, Noah Kahan, Morgan Wallen, Ariana Grande and Olivia Rodrigo.

Recorded music's subscription-revenue increase was driven by the growth in global subscribers as well as the continued benefit of price increases at various platforms.

“UMG’s continuing success is in large measure attributable to the fact that we always put artists at the center of everything we do and surround them with the industry’s most experienced teams and our broad-based and strategically integrated portfolio of businesses,” said UMG overlord Sir Lucian Grainge. "Our strategic plan is once again driving a strong start to the year, reflected in our results, as well as the exceptional performance of our artists around the world.”

Boyd Muir, UMG EVP, CFO and president of operations added, “2024 is off to a healthy start, with revenue growth in all segments as well as strong Adjusted EBITDA growth and margin expansion. We remain encouraged by the trajectory of the business and with the execution of our plans for this year and the years ahead."

UMG's Q1 earnings arrive hours after the label group announced a resolution to its disagreement with TikTok, which resulted in the removal of music by UMG-affiliated artists, songwriters and producers. UMG's stock spiked to above €28 upon the Amsterdam Exchange's opening on 5/2. Stay tuned for more comments from UMG leadership on the earnings call.