Universal Music Group revenue rose 18.6% on a constant currency basis (or 24% an actual basis) in the first 6 months of 2019, with streaming revenue growing an even more robust 25.5% using the same metric.
Overall recorded music revenues hit a record high of $2.93 billion, up 16.9% on a constant currency basis.
UMG parent Vivendi yesterday also reiterated plans to sell up to 50% of the music group by early 2020.
HIGHLIGHTS
- Universal Music Group’s (UMG) revenues amounted to €3,258 million, up 18.6% at constant currency and perimeter compared to the first half of 2018 (+24.0% on an actual basis).
- Recorded music revenues grew by 16.9% at constant currency and perimeter thanks to the growth in subscription and streaming revenues (+25.5%) and strong physical sales in the first half of 2019 (+15.0%), which more than offset the continued decline in download sales (-19.7%).
- Recorded music best sellers for the half year of 2019 included new releases from Ariana Grande, Billie Eilish and the Japanese bands King & Prince and back number, as well as continued sales of the soundtrack from A Star Is Bornand multiple albums from Queen.
- On the Spotify Global Chart, UMG had eight of the top 10 songs for the first half of 2019, including all of the top six, with Ariana Grande’s 7 Rings at No. 1. UMG also represented the No. 1 song for the entire 26 weeks of the first half of 2019.
- According to Nielsen’s Mid-Year 2019 Music Report, in the U.S., the world’s largest music market, UMG had six of the top 10 artists, including all of the top 5 (Ariana Grande, Drake, Billie Eilish, Post Malone and Queen); eight of the top 10 albums, including the Top 2 (Ariana Grande, Billie Eilish); and seven of the top 10 songs (based on digital consumption).
- In the United Kingdom, based on OCC (Official Charts Company) data, UMG had six of the top 10 singles of the first half of 2019, including Lewis Capaldi at No. 1, and six of the top 10 albums.
- Music publishing revenues grew by 10.5% at constant currency and perimeter compared to the first half of 2018, also driven by increased subscription and streaming revenues.
- Merchandising and other revenues were up 82.3% at constant currency and perimeter compared to the first half of 2018, thanks to increased touring activity and D2C (direct-to-consumer) revenues.
- Driven by revenue growth, UMG’s EBITA amounted to €481 million, up 43.6% at constant currency and perimeter compared to the first half of 2018 (+47.3% on an actual basis). In the first half of 2019, the EBITA margin increased by 240 points to 14.8%.