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 keeping with UMG’s contemporary set of quarterly outcomes, revealed at this time (April 29).
They reveal that UMG’s general Q1 income grew 8.1% YoY at fixed foreign money, pushed by the consolidation of Downtown Music Holdings, preliminary pricing advantages from Streaming 2.0 agreements, sturdy bodily gross sales, and synchronization earnings, 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 foreign money 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 foreign money to €310 million ($362.8m), with specific energy in Japan and the US.
Photograph: Austin Hargrave
“We proceed to construct probably 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 strong 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 probably 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 surroundings that protects artists and songwriters, champions human creativity, and embraces innovation at a pivotal second for our {industry}.”
RECORDED MUSIC
Common’s general Recorded Music income for the primary quarter of 2026 was €2.253 billion ($2.64bn), up 8.9% YoY at fixed foreign money. Excluding Downtown, Recorded Music income grew 5.4% YoY at fixed foreign money.
Throughout the Recorded Music section, UMG’s ‘Subscription and streaming revenues’ (together with ad-supported and subscription streaming revenues) grew 10.9% YoY at fixed foreign money 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 foreign money to succeed in €1.303 billion ($1.52bn). Excluding Downtown, subscription income grew 7.9% YoY at fixed foreign money.
Common’s ad-supported recorded music streaming income reached €339 million ($396.7m), up 5.0% YoY at fixed foreign money, although the corporate famous that buyers 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 foreign money to €310 million ($362.8m), with specific energy in Japan and the U.S.
‘License and different’ income decreased 3.6% YoY at fixed foreign money to €267 million ($312.5m), as underlying licensing income progress from sturdy synchronization income “was greater than offset by significant, non-recurring stay earnings within the first quarter of 2025.”
Downloads and different digital income reached €34 million ($39.8m), down 5.6% YoY at fixed foreign money, as a result of “continued industry-wide format shift”.
High sellers for the quarter included BTS, Olivia Dean, Taylor Swift, the KPop Demon Hunters soundtrack and Morgan Wallen.
MUSIC PUBLISHING
Common’s general Music Publishing income for the primary quarter of 2026 was €552 million ($645.8m), up 7.0% YoY at fixed foreign money. Excluding Downtown, Music Publishing income grew 4.3% in fixed foreign money.
Synchronization income grew 15.3% YoY at fixed foreign money to €68 million ($79.6m), pushed by stronger promoting, trailers, and movement image earnings.
Efficiency income elevated 6.5% YoY at fixed foreign money to €115 million ($134.6m).
Digital publishing income reached €328 million ($383.9m), up 4.8% YoY at fixed foreign money, with UMg citing a “troublesome comparability towards sturdy digital progress within the prior-year quarter”.
Mechanical income grew 12.0% YoYat fixed foreign money to €28 million ($32.8m), partially attributable to bodily energy 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 foreign money.
In line with UMG, the decline was pushed by decrease direct-to-consumer income as a result of timing of product releases and a decline in retail gross sales, partially offset by sturdy progress in touring earnings pushed by excursions for Woman Gaga, Conan Grey, and 9 Inch Nails, amongst others.
DOWNTOWN
Downtown Music Holdings contributed €86 million ($100.6m) in complete 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 foreign money 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 foreign money. Adjusted EBITDA margin was 21.9%, in comparison with 22.8% within the first quarter of 2025, with the decline primarily as a result of consolidation of Downtown.
Alongside its Q1 outcomes, UMG introduced that its Board has elevated the scale 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 situations and shareholder approval at UMG’s 2026 Annual Basic Assembly on Might 13.
As first reported by MBW earlier at this time, UMG additionally confirmed that, in March 2026, its Board approved 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 by our multi-faceted technique, whereas persevering with to broaden EBITDA and reinvest for the longer term.”
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 by our multi-faceted technique, whereas persevering with to broaden EBITDA and reinvest for the longer term.
“As well as, the vital steps we’re asserting at this time 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 pliability the Firm requires to drive additional success.”
All EUR-USD conversions made on the common Q1 2026 alternate fee revealed by the European Central Financial institution.Music Enterprise Worldwide
