Universal Music Group Reports Strong Q4 And Full-Year 2025 Financial Results

Universal Music Group (UMG) has reported steady revenue growth across its key business segments in its latest financial results for the fourth quarter and full year ending December 31, 2024, driven by strong performance in recorded music, publishing, and merchandising.

For the fourth quarter, UMG generated €3.44 billion in revenue, marking a 7.2% year-on-year increase, or 7.9% growth in constant currency, reflecting broad-based gains across the company’s core divisions.

Full-Year Performance

For the full year, the world’s largest music company posted €11.83 billion in total revenue, up 6.5% compared with 2023, supported by continued growth in subscription streaming, licensing, and merchandising activities.

The company’s Adjusted EBITDA reached €2.66 billion, representing a 12.3% year-on-year increase, while its Adjusted EBITDA margin expanded to 22.5%, highlighting improved operating leverage and cost efficiencies.

Recorded Music Drives Growth

UMG’s recorded music division remained the primary growth engine. Subscription streaming revenue increased 8.2% year-on-year, fueled by the continued expansion of global paid subscribers and price adjustments implemented across streaming platforms.

However, overall streaming revenue experienced a slight dip of 0.8% year-on-year, though it remained stable when adjusted for currency fluctuations.

Physical music sales saw modest declines overall, while licensing and other revenue grew 12.9%, reflecting higher demand for music across film, television, advertising, and digital platforms.

Among the year’s best-performing releases were albums from global superstars including Taylor Swift, Billie Eilish, Sabrina Carpenter, Morgan Wallen, and Chappell Roan, underscoring the continued commercial impact of major artist releases within UMG’s roster.

Publishing and Merchandising Expand

UMG’s music publishing division recorded €2.12 billion in revenue for the year, growing 8.4% year-on-year, driven by higher subscription streaming income and improved performance royalties.

Meanwhile, the Merchandising and Other segment emerged as one of the fastest-growing areas, generating €842 million in annual revenue, a 19.3% increase, largely due to direct-to-consumer sales and touring-related merchandise.

Outlook

The results highlight UMG’s continued ability to diversify its revenue streams beyond traditional streaming through licensing, publishing, and merchandise ecosystems. The company has increasingly focused on direct-to-fan monetization strategies and leveraging its global catalog to sustain long-term growth.