Universal Music Group’s third-quarter revenue rose 11.7% to €3.39 billion ($3.87 billion), led by subscription streaming growth and the integration of Downtown Music Group. Excluding Downtown, revenue increased 5.3%. Results topped analysts’ expectations of about €3.37 billion.
Subscription streaming revenue climbed 17.9% to €1.81 billion, with Downtown contributing €146 million. Adjusted EBITDA rose 9% in constant currency to €729 million, while the adjusted EBITDA margin expanded 0.4 percentage points to 21.5%.
Recorded music revenue grew 14.7% in constant currency to €2.56 billion, supported by subscription streaming, ad-supported streaming and physical sales. Top sellers included Mrs. Green Apple, Olivia Rodrigo, Stray Kids, Ariana Grande and The Beatles. Music publishing revenue increased 7.5% in constant currency, while merchandise revenue fell 4.6% amid fewer major tours.
UMG CEO Lucian Grainge called Downtown the company’s most important acquisition since EMI. The company also continues a cost-cutting program announced in 2024, which it says is expected to generate €250 million in annual savings by the end of 2026.