Key facts
- Universal Music Group reported Q2 revenue of €3.29 billion, up 13.3% year-over-year in constant currency.
- The revenue growth was boosted by the consolidation of Downtown Music Holdings.
- Higher streaming prices from Streaming 2.0 agreements also contributed to the revenue increase.
- Recorded Music subscription revenue saw a 16.6% rise in constant currency.
- Adjusted EBITDA grew 1.5% in constant currency to €674 million.
Universal Music Group N.V. announced its financial results for the second quarter and half year ended June 30, 2026, reporting a second-quarter revenue of €3.29 billion. This represents a 13.3% increase year-on-year when measured in constant currency, driven by the consolidation of Downtown Music Holdings and benefits from higher streaming prices under Streaming 2.0 agreements. The company also noted strong performance in physical sales, licensing, and other revenue streams, as well as healthy performance revenue.
Recorded Music subscription revenue grew by 16.6% in constant currency, also benefiting from the Downtown consolidation and streaming pricing. Adjusted EBITDA for the quarter rose 1.5% in constant currency to €674 million. However, the adjusted EBITDA margin decreased by 2.2 percentage points to 20.5%, attributed to the Downtown consolidation, revenue mix pressures in Recorded Music, and a loss in Merchandising.
For the first half of 2026, revenue reached €6.194 billion, an increase of 10.8% in constant currency. Recorded Music revenue grew 12.7% and Music Publishing revenue grew 8.4% in constant currency, both boosted by the Downtown acquisition. Adjusted EBITDA for the first half increased 2.7% in constant currency to €1.310 billion, though the margin contracted by 1.6 percentage points to 21.1% primarily due to the Downtown consolidation.
Top-selling artists in the second quarter included Noah Kahan, BTS, Olivia Rodrigo, Drake, and Olivia Dean. Sir Lucian Grainge, Chairman and CEO, highlighted the company's strategic plan execution and capitalization on new technologies, while CFO Matt Ellis emphasized building market leadership and driving growth.