Common Music Group generated revenues of EUR €2.9 billion (USD $3.39bn) throughout all of its divisions (together with recorded music, publishing, and extra) in Q1 (the three months ending March 31, 2026).
That’s in accordance with UMG’s recent set of quarterly outcomes, printed as we speak (April 29).
They reveal that UMG’s total Q1 income grew 8.1% YoY at fixed forex, pushed by the consolidation of Downtown Music Holdings, preliminary pricing advantages from Streaming 2.0 agreements, sturdy bodily gross sales, and synchronization revenue, contributing to progress in Recorded Music and Music Publishing.
Adjusted EBITDA weighed in at €636 million ($744.3m) — a margin of 21.9%.
Among the many highlights in UMG’s newest outcomes was the corporate’s recorded music subscription income, which grew 12.5% YoY at fixed forex to succeed in €1.303 billion ($1.52bn) in Q1, benefiting from the consolidation of Downtown and preliminary pricing advantages from Streaming 2.0 agreements.
Bodily income grew 12.7% YoY at fixed forex to €310 million ($362.8m), with specific power in Japan and the US.
Photograph: Austin Hargrave
“We proceed to construct essentially the most profitable music firm in historical past by attracting the world’s high expertise, participating followers globally, and delivering long-term worth for stakeholders.”
Commenting on the Q1 earnings announcement, UMG’s Chairman and CEO, Sir Lucian Grainge, stated: “We delivered a stable quarter of progress in our core companies, complemented by our strategic improvement and funding in fast-growing areas of the {industry}.
“We proceed to construct essentially the most profitable music firm in historical past by attracting the world’s high expertise, participating followers globally, and delivering long-term worth for stakeholders. Central to that mission is fostering an setting that protects artists and songwriters, champions human creativity, and embraces innovation at a pivotal second for our {industry}.”
RECORDED MUSIC
Common’s total Recorded Music income for the primary quarter of 2026 was €2.253 billion ($2.64bn), up 8.9% YoY at fixed forex. Excluding Downtown, Recorded Music income grew 5.4% YoY at fixed forex.
Inside the Recorded Music section, UMG’s ‘Subscription and streaming revenues’ (together with ad-supported and subscription streaming revenues) grew 10.9% YoY at fixed forex to €1.642 billion ($1.92bn).
Breaking UMG’s recorded music streaming determine down additional reveals that the corporate’s subscription streaming revenues grew 12.5% YoY at fixed forex to succeed in €1.303 billion ($1.52bn). Excluding Downtown, subscription income grew 7.9% YoY at fixed forex.
Common’s ad-supported recorded music streaming income reached €339 million ($396.7m), up 5.0% YoY at fixed forex, although the corporate famous that customers proceed to shift consumption from “better-monetized video platforms to short-form platforms”.
Inside Common’s recorded music enterprise, Bodily income grew 12.7% YoY at fixed forex to €310 million ($362.8m), with specific power in Japan and the U.S.
‘License and different’ income decreased 3.6% YoY at fixed forex to €267 million ($312.5m), as underlying licensing income progress from sturdy synchronization income “was greater than offset by significant, non-recurring reside revenue within the first quarter of 2025.”
Downloads and different digital income reached €34 million ($39.8m), down 5.6% YoY at fixed forex, because of the “continued industry-wide format shift”.
Prime sellers for the quarter included BTS, Olivia Dean, Taylor Swift, the KPop Demon Hunters soundtrack and Morgan Wallen.
MUSIC PUBLISHING
Common’s total Music Publishing income for the primary quarter of 2026 was €552 million ($645.8m), up 7.0% YoY at fixed forex. Excluding Downtown, Music Publishing income grew 4.3% in fixed forex.
Synchronization income grew 15.3% YoY at fixed forex to €68 million ($79.6m), pushed by stronger promoting, trailers, and movement image revenue.
Efficiency income elevated 6.5% YoY at fixed forex to €115 million ($134.6m).
Digital publishing income reached €328 million ($383.9m), up 4.8% YoY at fixed forex, with UMg citing a “tough comparability in opposition to sturdy digital progress within the prior-year quarter”.
Mechanical income grew 12.0% YoYat fixed forex to €28 million ($32.8m), partially attributable to bodily power in Japan.
MERCHANDISING AND OTHER
UMG’s ‘Merchandising and Different’ income within the first quarter of 2026 reached €101 million ($118.2m), down 1.9% YoY at fixed forex.
In keeping with UMG, the decline was pushed by decrease direct-to-consumer income because of the timing of product releases and a decline in retail gross sales, partially offset by sturdy progress in touring revenue pushed by excursions for Woman Gaga, Conan Grey, and 9 Inch Nails, amongst others.
DOWNTOWN
Downtown Music Holdings contributed €86 million ($100.6m) in whole income from its consolidation date of February 20 — roughly five-and-a-half weeks of the quarter.
The overwhelming majority of Downtown’s contribution got here from Recorded Music, which accounted for €72 million ($84.3m) of the whole. Inside that, subscription and streaming income reached €66 million ($77.2m), of which €54 million ($63.2m) got here from subscription income particularly.
Downtown’s Music Publishing operations contributed €14 million ($16.4m), with digital income of €11 million ($12.9m) making up the majority of the publishing determine.
Downtown’s Adjusted EBITDA was €3 million ($3.5m), an Adjusted EBITDA margin of 3.5%.
EBITDA ETC.
In Q1 2026, UMG’s EBITDA (earnings earlier than curiosity, taxes, and depreciation) grew 2.1% YoY at fixed forex to €571 million ($668.2m).
EBITDA margin got here in at 19.7%, in comparison with 20.8% within the first quarter of 2025.
Adjusted EBITDA for Q1 was €636 million ($744.3m), up 3.9% YoY at fixed forex. Adjusted EBITDA margin was 21.9%, in comparison with 22.8% within the first quarter of 2025, with the decline primarily because of the consolidation of Downtown.
Excluding Downtown, Adjusted EBITDA grew 3.4% YoY in fixed forex.
Alongside its Q1 outcomes, UMG introduced that its Board has elevated the dimensions of its share buyback authorization to €1 billion ($1.17bn).
When UMG completes its €500 million share buyback program introduced in March, it intends to provoke one other buyback program for the incremental €500 million, topic to market circumstances and shareholder approval at UMG’s 2026 Annual Common Assembly on Could 13.
As first reported by MBW earlier as we speak, UMG additionally confirmed that, in March 2026, its Board licensed the monetization of half of its fairness stake in Spotify.
“In opposition to the backdrop of a wholesome {industry}, we’re persistently driving sustained income progress via our multi-faceted technique, whereas persevering with to broaden EBITDA and reinvest for the long run.”
Matt Ellis, UMG
Matt Ellis, UMG’s CFO, stated: “In opposition to the backdrop of a wholesome {industry}, we’re persistently driving sustained income progress via our multi-faceted technique, whereas persevering with to broaden EBITDA and reinvest for the long run.
“As well as, the vital steps we’re asserting as we speak to extend our share buyback authorization and monetize a portion of our fairness stake in Spotify will result in enhanced shareholder worth whereas sustaining the flexibleness the Firm requires to drive additional success.”
All EUR-USD conversions made on the common Q1 2026 change fee printed by the European Central Financial institution.Music Enterprise Worldwide
