Universal Music Group N.V. Reports Financial Results for the First Quarter Ended March 31, 2026

Q1 2026 Results
Revenue for the first quarter of 2026 grew 8.1% in constant currency, with the consolidation of Downtown as of February 20, 2026. Excluding Downtown, revenue grew 4.9% in constant currency with improvement in Recorded Music and Music Publishing due to:

• Initial pricing benefits of Streaming 2.0 agreements;
• Strong physical sales; and
• Healthy synchronization income.

Adjusted EBITDA grew 3.9% in constant currency. Excluding Downtown, Adjusted EBITDA grew 3.4% in constant currency and Adjusted EBITDA margin declined 0.3pp year-over-year due to:

• Improvement in Music Publishing margin and flat Recorded Music margin;
• An increase in corporate overhead, largely associated with strategic technology initiatives; and
• Lower margins in Merchandising.

Recorded Music

Q1 2026
Recorded Music revenue grew 8.9% in constant currency, and grew 5.4% in constant currency excluding Downtown:

• Subscription revenue grew 12.5% in constant currency, and grew 7.9% in constant currency excluding Downtown. Wholesale price increases contributed 3pp to the growth rate, partially offset by a 2pp negative impact from a light release schedule which led to lower market share against strong market share in the prior-year quarter.
• Streaming revenue increased 5.0% in constant currency, and grew 1.2% in constant currency excluding Downtown, as consumers continue to shift consumption from better monetized video platforms to short-form platforms.
• Downloads and other digital revenue declined 5.6% in constant currency, and declined 11.1% in constant currency excluding Downtown, due to continued industry-wide format shift.
• Physical revenue increased 12.7% in constant currency, both with and excluding Downtown, with particular strength in Japan and the U.S.
• License and other revenue decreased 3.6% in constant currency, and declined 5.1% in constant currency excluding Downtown, as underlying licensing revenue growth from strong synchronization revenue was more than offset by meaningful, non-recurring live income in the first quarter of 2025.

Recorded Music Adjusted EBITDA was up 6.0% in constant currency, and grew 5.3% in constant currency excluding Downtown, while Adjusted EBITDA margin was flat excluding Downtown, reflecting:

• Operating leverage driven by Streaming 2.0 price increases;
• A negative impact of repertoire mix.

Music Publishing

Q1 2026
Music Publishing revenue grew 7.0% in constant currency, and grew 4.3% in constant currency excluding Downtown:

• Performance revenue increased 6.5% in constant currency, and grew 5.6% in constant currency excluding Downtown.
• Synchronization revenue increased 15.3% in constant currency, and grew 13.6% in constant currency excluding Downtown driven by stronger advertising, trailers and motion picture income.
• Digital revenue grew 4.8% in constant currency, and grew 1.3% in constant currency excluding Downtown, with a difficult comparison against strong digital growth in the prior-year quarter.
• Mechanical revenue grew 12.0% in constant currency, with and without Downtown, partially due to physical strength in Japan.

Music Publishing Adjusted EBITDA increased 11.6% in constant currency, and grew 12.4% in constant currency excluding Downtown. Excluding Downtown, Music Publishing Adjusted EBITDA margin grew 1.9pp as a result of:

• Favorable revenue mix;
• Partially offset by higher legal fees related to copyright enforcement.

Merchandising and Other

Q1 2026
Merchandising and Other revenue decreased 1.9% in constant currency, primarily driven by:

• Decline in direct-to-consumer revenue due to the timing of product releases, which was particularly strong in the first quarter of 2025, and a decline in retail sales;
• Partially offset by strong growth in touring income driven by tours for Lady Gaga, Conan Grey and Nine Inch Nails, amongst others.  

Merchandising and Other Adjusted EBITDA loss widened in the first quarter of 2026 and Merchandising and Other Adjusted EBITDA margin declined 6.3pp to (9.9%) due to:

• Seasonally lower revenue against fixed overhead;
• Unfavorable revenue mix with proportionally higher touring revenues; and
• Higher marketing spend, largely due to timing.

Update on Capital Allocation and Management Initiatives
As a company operating in a fast-evolving sector, UMG and its Board of Directors (the "Board") continuously assess the Company's business and financial strategy. Today, the Company can update shareholders on certain capital allocation and management initiatives that the Board and management have been considering since 2025:

• Share buyback: The Board considers UMG's share price to be undervalued relative to its business performance and prospects, and has accordingly increased the size of its share buyback authorization to €1 billion. When the Company completes the €500 million share buyback program announced on March 30, 2026, it intends to initiate another share buyback program for the incremental €500 million authorization, subject to market conditions and the shareholders approving a new share buyback authorization at UMG's 2026 Annual General Meeting of Shareholders (AGM). The Company intends to use the repurchased shares to meet its obligations under the 2022 Universal Music Group Global Equity Plan, and subplans thereof ("the equity plan"), and/or to reduce the share capital of the Company. Dependent on factors including market conditions, the Board may further increase the buyback authorization in subsequent periods.
• Monetization of Spotify stake: Given the importance of capital discipline, the expected returns from buying back UMG's shares, and the Company's confidence in the the long-term growth of the ecosystem, in March 2026 the Board authorized the monetization of half of the Company's equity stake in Spotify. Consistent with the Company's approach to artist compensation, artists will share in the proceeds. UMG's share will initially be directed towards its buyback program.  

Items Impacting Comparability of Results

Downtown Results

ANALYSIS OF REVENUES AND OPERATING RESULTS BY BUSINESS SEGMENT

RECORDED MUSIC

MUSIC PUBLISHING

Conference Call Details

The Company will host a conference call to discuss these results on Wednesday, April 29, 2026 at 6:15PM CEST. A link to the live audio webcast will be available on investors.universalmusic.com and a link to the replay will be available after the call.

While listeners may use the webcast, a dial-in telephone number is required for investors and analysts to ask questions.  Investors and analysts interested in asking questions can pre-register for a dial-in line at investors.universalmusic.com under the "Financial Reports" tab.

Cautionary Notice

This press release is published by Universal Music Group N.V. and contains inside information within the meaning of article 7(1) of Regulation (EU) No 596/2014 (Market Abuse Regulation).

Forward-looking statements

This press release may contain statements that constitute forward-looking statements with respect to UMG's financial condition, results of operations, business, strategy and plans. Such forward-looking statements may be identified by the use of words such as 'profit forecast', 'expect', 'estimate', 'project', 'anticipate', 'should', 'intend', 'plan', 'probability', 'risk', 'target', 'goal', 'objective', 'will', 'endeavour', 'optimistic', 'prospects' and similar expressions or variations on such expressions. Although UMG believes that such forward-looking statements are based on reasonable assumptions, they are not guarantees of future performance. Actual results may differ materially from such forward-looking statements as a result of a number of risks and uncertainties, many of which are related to factors that are outside UMG's control, including, but not limited to, UMG's inability to compete successfully and to identify, attract, sign and retain successful recording artists and songwriters, failure of streaming and subscription adoption or revenue to grow or to grow less rapidly than anticipated, UMG's reliance on digital service providers, UMG's inability to execute its business strategy, the global nature of UMG's operations, changes in global economic and financial conditions, UMG's inability to protect its intellectual property and against piracy, challenges related to generative AI, UMG's inability to attract and retain key personnel, UMG's restructuring and reorganization activities, UMG's acquisitions and other investments, changes in laws and regulations (and UMG's compliance therewith) and the other risks that are described in our 2025 Annual Report. Accordingly, UMG cautions readers against placing undue reliance on such forward-looking statements. Such forward-looking statements are made as of the date of this press release. UMG disclaims any intention or obligation to provide, update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Alternative Performance Indicators

This press release includes certain alternative performance indicators which are not defined in IFRS Accounting Standards issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release.

About Universal Music Group

At Universal Music Group (EURONEXT: UMG), we exist to shape culture through the power of artistry. UMG is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising and audiovisual content. Featuring the most comprehensive catalogue of recordings and songs across every musical genre, UMG identifies and develops artists and produces and distributes the most critically acclaimed and commercially successful music in the world. Committed to artistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. For more information on Universal Music Group N.V. visit www.universalmusic.com. 

Contacts

Media
James Steven - communicationsnl@umusic.com

Investors
Erika Begun - investorrelations@umusic.com

Upcoming Calendar

Annual General Meeting of Shareholders: May 13, 2026

Appendix

Non-IFRS Alternative Performance Indicators and Reconciliations

Reconciliation of Adjusted EBITDA by Segment

Definitions

In this press release, UMG presents certain financial measures when discussing UMG's performance that are not measures of financial performance or liquidity under IFRS ("non-IFRS"). These non-IFRS measures (also known as alternative performance indicators) are presented because management considers them important supplemental measures of UMG's performance and believes that they are widely used in the industry in which UMG operates as a means of evaluating a company's operating performance and liquidity. UMG believes that an understanding of its sales performance, profitability, financial strength and funding requirements is enhanced by reporting the following non-IFRS measures. All non-IFRS measures should be considered in addition to, and not as a substitute for, IFRS measures of operating and financial performance as described in this press release. In addition, it should be noted that other companies may have definitions and calculations for these non-IFRS measures that differ from those used by UMG, thereby affecting comparability.

EBITDA and EBITDA margin
UMG considers EBITDA and EBITDA margin, non-IFRS measures, to be relevant measures to assess its operating performance. It excludes restructuring expenses, which may impact period-to-period comparability. EBITDA margin is EBITDA divided by revenue.

To calculate EBITDA, the accounting impact of the following items is excluded from the Operating Profit:

i.     amortisation of intangible assets;
ii.    impairment of goodwill and other intangibles;
iii.   depreciation of tangible assets including right of use assets;
iv.   (gains)/losses on the sale of tangible assets, including right of use assets and intangible assets; and
v.    restructuring expenses.

Adjusted EBITDA and Adjusted EBITDA margin
The difference between EBITDA and Adjusted EBITDA consists of non-cash share-based compensation expense, integration and business transformation costs and certain one-time items, that are deemed by management to be significant and incidental to normal business activity. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue.

UMG considers Adjusted EBITDA and Adjusted EBITDA margin, non-IFRS measures, to be relevant measures to assess its operating performance and performance of its operating segments excluding items that may be incidental to normal business activity and excluding non-cash share based compensation which may impact period-to-period comparability.

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