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Common Music Group has revealed its monetary outcomes for the second quarter and first half of the 12 months.
The headline stat from the world’s largest music rights firm’s Q2 outcomes (for the three months to finish of June): UMG generated revenues of EUR €2.932 billion throughout all of its divisions (together with recorded music, publishing and extra).
UMG’s Q2 income determine converts to USD $3.15 billion on the common quarterly alternate charge revealed by the European Central Financial institution, and was up 9.6% YoY at fixed forex.
Commenting on the outcomes, UMG´s Chairman and CEO Sir Lucian Grainge, stated: “Our continued robust income progress this quarter demonstrates that we’re, by design, a multifaceted music leisure firm that locations our artists on the middle of every little thing we do.”
Credit score: Sthanlee B. Mirador/Sipa USA/Alamy
“Our continued robust income progress this quarter demonstrates that we’re, by design, a multifaceted music leisure firm that locations our artists on the middle of every little thing we do.”
Sir Lucian Grainge
He added: “Our distinctive construction, which is each progressive and continuously evolving, permits us to assist our recording artists and songwriters with an ever-expanding array of income sources, strengthened by new merchandise and the thrilling subsequent part of improvement of streaming providers.”
Amongst UMG’s different Q2 highlights have been a 6.9% YoY leap within the firm’s subscription streaming revenues, a 14.4% YoY improve within the firm’s bodily revenues, and 43.7% YoY progress in its ‘Merchandising and Different’ income section.
RECORDED MUSIC
Common’s total recorded music revenues for Q2 2024 (together with streaming plus bodily and many others.) have been €2.2 billion ($2.368bn), up 6.8%YoY at fixed forex (see beneath).
Throughout the Recorded Music section, UMG’s ‘Subscription and streaming revenues’ (together with ad-supported and subscription streaming revenues) grew 4.1% YoYat fixed forex to €1.480 billion ($1.593bn).
Breaking down UMG’s recorded music streaming determine additional reveals that the corporate’s subscription streaming revenues grew 6.9% YoY at fixed forex to €1.137 billion ($1.224bn).
UMG stated this progress was pushed “primarily by the expansion in world subscribers in addition to the impression of sure value will increase.”
Proof of that world subscriber progress arrived yesterday. The world’s largest subscription music streaming service, Spotify, reported yesterday (July 23) that it added 7 million premium subscribers in Q2 to complete the quarter with a world Premium Subscriber base of 246 million paying customers.
In the meantime, the value will increase referenced by UMG might additionally discuss with these applied by the likes of Spotify, which in July final 12 months, elevated its flagship subscription value level in a number of territories together with the US and UK for the first time in its 15-year historical past. Slightly below a 12 months later, it raised its subscription costs once more in key mature markets, together with the US and UK.
Common’s ad-supported recorded music streaming income, in the meantime, decreased 3.9% YoY at fixed forex to €343 million ($369.3m), due, in keeping with UMG, “to a deceleration in progress at key advertising-based platform companions in addition to shortfalls on sure platforms associated to the timing of deal renewals”.
Inside Common’s recorded music enterprise, bodily revenues shot up by 14.4% YoY at fixed forex to €357 million ($384.38m). UMG pinned this progress on “a good launch schedule driving vinyl gross sales within the US and Europe”, which it stated, “greater than offset a tough comparability in opposition to final 12 months’s robust CD gross sales in Japan”.
Elsewhere in UMG’s recorded music section, ‘License and different’ income grew 18% YoY on each a reported and fixed forex foundation. UMG experiences that this progress got here “on account of enhancements in synchronization earnings, better reside and audiovisual manufacturing earnings and elevated direct-to-consumer associated actions”.
Prime sellers for the quarter included releases from Taylor Swift, Billie Eilish, SEVENTEEN, Morgan Wallen and Ae! group, whereas high sellers within the prior-year quarter included King & Prince, Morgan Wallen, SEVENTEEN, Taylor Swift and Stray Children.
MUSIC PUBLISHING
Elsewhere, Common’s Music Publishing division,Common Music Publishing Group, generated revenues of €511 million ($550.19m) in Q2, up10.4%YoY at fixed forex (see beneath).
Inside Music Publishing, digital income reached €311 million ($334.85m), up 17.4%YoY at fixed forex, pushed by “the expansion in streaming and subscription income and the timing of offers,” in keeping with UMG.
Synchronization income grew 1.7% YoY year-over-year on each a reported and fixed forex foundation.
Mechanical income, in the meantime, declined 10.3% YoY at fixed forex “on account of the business’s continued shift in direction of digital codecs,” UMG stated in its submitting on Tuesday.
MERCHANDISING AND OTHER
Merchandising and Different income within the second quarter of 2024 reached €227 million ($244.41m), a rise of 43.7% YoY at fixed forex.
UMG reported that this progress was pushed by “progress in direct-to-consumer gross sales and better touring merchandise gross sales on account of robust touring exercise within the interval”.
EBITDA ETC.
In Q2 2024, UMG’s EBITDA (earnings earlier than curiosity, taxes, and depreciation) grew 17.4% YoYat fixed forex to €580 million ($624.48m).
EBITDA margin was 19.8%, in comparison with 18.7% within the second quarter of 2023.
UMG famous in its submitting that EBITDA and EBITDA margin have been impacted by non-cash share-based compensation bills of €69 million throughout Q2 2024, in comparison with €85 million in the course of the second quarter of 2023.
Excluding these non-cash share-based compensation bills, UMG’s adjusted EBITDA for Q2 was €649 million ($698.77m), up 11.3% YoY at fixed forex.
In the meantime, as you possibly can see from the desk above, UMG’s adjusted EBITDA margin expanded 0.2 share factors to 22.1% in Q2 2024 vs. 21.9% in Q2 2023, due – Common famous – to “income progress and value financial savings from the beforehand introduced strategic organizational redesign, partially offset by the unfavourable impression of income combine ensuing from a better proportion of merchandising and bodily gross sales”.
“We proceed to take a position into the expansion we see forward of us as we execute in opposition to our long-term strategic plan.”
Boyd Muir, UMG
Boyd Muir, UMG’s EVP, CFO and President of Operations, added: “Our diverse income streams, throughout each rising and established companies, allowed us to as soon as once more obtain high-single digit income progress and double-digit Adjusted EBITDA progress this quarter.
“We proceed to take a position into the expansion we see forward of us as we execute in opposition to our long-term strategic plan.”
All references to YoY percentages on this story, whether or not acknowledged as such or not, are in fixed forex. All EUR-USD conversions on this report for Q2 2024 have been made as the common prevailing quarterly charge as recognized by the European Central Financial institution.
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