PARIS, France (CelebrityAccess) — Universal Music Group reported a strong second quarter, with both revenue and profits up substantially over Q1 2021.
“Our strong performance across diversified revenue streams is fueled by the successful partnerships we’ve formed with our artists—both new and established—in markets around the world. The widespread growth we are producing throughout UMG demonstrates that our strategy is progressing as planned, underscoring the strength and resilience of our business and our ability to deliver for our artists and our shareholders alike,” commented UMG Chairman and CEO Sir Lucian Grainge.
For the quarter, which ended on June 30th, UMG reported revenue of €2.535bn, up 25.4% or 17.3 % on a constant currency basis. The lion’s share of that revenue came from streaming subscriptions, which accrued €966 million during the quarter, while non-subscription streaming added an additional €348 million to the total.
Physical product was a significant contributor to revenue for the quarter, adding €303, while an additional 236 million was added from licensing and other revenue streams.
UMG’s music publishing operation was also a revenue generator for the quarter, adding €476 overall for Q2. The music publishing division’s performance was driven by digital, which accounted for €346 million and was up by a staggering 121.8% from the previous quarter. Performance royalties flagged, dropping more than 40% to €36 million, while sync and mechanical royalties generated €59 million and €23 million respectively in Q2.
UMG also reported a health improvement for their earnings before interest, taxes, depreciation, and amortization, with the label giant recording €507 million for the quarter, a margin of 20%.
“We’re driving incremental revenue and EBITDA through a range of compelling monetization opportunities, which in turn enables us to thoughtfully reinvest in the business’s long-term growth”, said Boyd Muir, UMG’s EVP, CFO and President of Operations.
