Universal Music Group (UMG) saw revenue grow significantly last quarter, though its streaming earnings declined as listeners turn to new platforms.
Revenue last quarter rose by 7.2% year-over-year to EU€3.44 billion (A$5.897 billion). Full-year revenue grew by 6.5%, reaching €11.83 billion.
“Our industry-leading investment in talent continued to produce spectacular results, both from global superstars, as well as developing artists from around the world,” said UMG CEO Lucian Grainge.
“We continue to create value for both our artists and shareholders by advancing our artist-centric strategy, ushering the next evolution of streaming — ‘Streaming 2.0’, and advancing a responsible and effective approach to AI.”
Adjusted diluted earnings per share last year were €0.96, up from €0.88 in 2023. EBITDA also rose by 25.2% to €706 million last quarter, and grew by 29% across the year.
Streaming revenue fell by 5.1% year-over-year last quarter to €375 million, and declined by 0.8% across 2024. The company said this was due to a shift towards short-form video platforms with less robust monetisation schemes.
In January, UMG signed a multi-year agreement with Spotify that would see the platform add additional paid subscription tiers and new audio and visual content.
Under its Streaming 2.0 plan, UMG hopes to bolster streaming revenue with a slate of exclusive content, based on deals with platforms like Spotify and Amazon Music. It also will work with these platforms to take on artificial intelligence-generated music that infringes on UMG’s copyright, while the company’s joint lawsuit against AI music companies Suno and Udio is yet to be decided.
Subscription-based revenue rose by 7.9% last quarter. Physical revenue was also up by 2.5%, largely due to strong sales in Japan.
Total revenue in its Recorded Music sector in Q4 2024 was €2.57 billion, rising by 6%. Music Publishing, its other main division, saw revenue grow by 6.4% to €613 million.
UMG’s final dividend will be €0.28 per share, bringing its total dividend for 2024 to €0.52 per share.
The company did not offer forecasts for 2025’s financial performance.
UMG’s (EAS: UMG) share price closed at €25.98, up from its previous close at €25.82. Its market capitalisation is €47.98 billion.
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