Key facts
- Universal Music Group reported Q2 revenue of €3.29 billion, up 13.3% year-over-year in constant currency.
- Revenue growth was boosted by the consolidation of Downtown Music Holdings and higher streaming prices.
- Recorded Music subscription revenue growth slowed to 6.7% from 7.9% in the first quarter.
- Universal Music Group shares fell 23% on the news.
- Vivendi, UMG's largest shareholder, dropped 14%.
Universal Music Group N.V. reported second-quarter revenue of €3.29 billion, a 13.3% increase year-on-year in constant currency, driven by the consolidation of Downtown Music Holdings and higher streaming prices. However, the company's shares plunged 23% as subscription revenue growth slowed to 6.7% from 7.9% in the first quarter, raising concerns about its streaming momentum. Vivendi, UMG's largest shareholder, dropped 14% in sympathy. JPMorgan noted that subscription trends could improve in the second half with strengthening market share and a better release slate, while potential cost-saving programs and AI-derived services remain future catalysts.