Universal Music Group revenue rises 12.3% to €3.394 billion in third quarter
Key Facts
Universal Music Group reported third-quarter revenue of €3,394 million, up 12.3% year on year, according to results for the period ended September 30, 2026. Revenue growth was 11.7% at constant currency, but fell to 5.3% excluding the impact of the Downtown acquisition. The gap indicates that the acquisition lifted the reported growth rate, while the existing business continued to increase revenue. Adjusted EBITDA rose 9.0% at constant currency, or 7.0% excluding Downtown. Adjusted EBITDA margin, excluding Downtown, widened 0.4 percentage points to 22.4%.
Subscription growth was the main revenue driver, with recorded music subscription revenue up 19.2% at constant currency in the third quarter. Excluding Downtown, growth in this line was 9.5%. The company attributed the performance in part to wholesale price increases and continued healthy subscriber growth. It also cited new streaming agreements benefiting from pricing, alongside higher ad-supported streaming revenue, as growth drivers. The company added that higher digital revenue in its music publishing division also supported results.
Recorded music revenue rose 14.7% at constant currency, compared with 7.4% excluding Downtown. Streaming revenue grew 13.5%, but the increase fell to 4.7% excluding the acquisition. By contrast, downloads and other digital revenue declined 15.4% at constant currency, with the decrease at 30.8% excluding Downtown. The results show divergent performance across digital distribution channels, with streaming growth and a decline in downloads. Physical revenue rose 17.4% at constant currency, both including and excluding Downtown, with broad strength in North America, Japan and Europe.
In music publishing, revenue rose 7.5% at constant currency, or 1.5% excluding Downtown. The division's digital revenue increased 11.8%, while growth excluding the acquisition was 3.9%. But the revenue improvement did not translate into higher divisional profitability during the quarter: adjusted EBITDA fell 3.5% at constant currency, or 4.3% excluding Downtown. The division's adjusted EBITDA margin, excluding Downtown, declined 1.5 percentage points to 24.2%. Chief Financial Officer Matt Ellis said the company's adjusted EBITDA margin, excluding Downtown, expanded 40 basis points, driven by stronger margins in recorded music.
Chairman and Chief Executive Officer Lucian Grainge said the company was "investing in human creativity, improving the economics of streaming and expanding what is possible for artists and audiences." The group's results come as Vivendi holds a minority stake in it, rather than a controlling stake. Vivendi said its stake was 9.89% on June 30, 2026. It valued the stake at €2,593 million on September 30, based on a share price of €14.265. It had valued it at €3,332 million, or €18.33 per share, on June 30, and at €4,041 million, or €22.23 per share, on December 31, 2025.
Vivendi's portfolio of non-controlling stakes in listed companies was valued at €3,935 million on September 30, compared with €4,772 million on June 30 and €5,532 million on December 31, 2025. The company said the portfolio was worth €4,238 million at closing prices on October 19. Vivendi attributed the increase from the end-September level to a rise in Universal Music Group's share price since then. The earnings statement did not include a separate figure for movement in Vivendi's share price following the group's results. The size of Vivendi's stake and its weight in the portfolio link the group's performance to the value of its investment, while the reported operating results remain specific to Universal Music Group.