Universal Music Group Q3 Revenue Rises 12.3% as Downtown Adds €195 Million

Universal Music Group N.V. (0VD.DE ) on October 29, 2026 reported unaudited revenue of €3,394 million for the third quarter ended September 30, 2026, up 12.3% from €3,021 million a year earlier, in the company’s first quarterly report to include a full period of results from Downtown following its acquisition on February 20, 2026. Revenue grew 11.7% in constant currency, and 5.3% in constant currency excluding Downtown, according to the company’s third-quarter results announcement.

EBITDA rose 13.1% to €672 million from €594 million, while Adjusted EBITDA increased 9.8% to €729 million from €664 million, or 9.0% in constant currency. Adjusted EBITDA margin was 21.5%, down 0.5 percentage points from 22.0% in the prior-year quarter. Excluding Downtown, Adjusted EBITDA grew 7.0% in constant currency and margin expanded 0.4 percentage points to 22.4%, which the company attributed to margin expansion in Recorded Music, partially offset by lower profitability in Music Publishing and Merchandising.

“Our results show the enduring value of backing extraordinary artists, bold ideas, and the teams and technology that help bring their work to the world,” said Sir Lucian Grainge, Chairman and CEO of Universal Music Group. “We are investing in human artistry, improving the economics of streaming, and expanding what’s possible for artists and fans.”

“This quarter showed clear progress: subscription revenue growth accelerated, and Adjusted EBITDA margin excluding Downtown expanded by 40 basis points, led by stronger margins in Recorded Music,” said Matt Ellis, UMG’s CFO. Ellis said the company is focused on sustaining that progress, capturing the strategic and financial benefits of Downtown, and improving efficiency across the company.

UMG said constant-currency revenue growth excluding Downtown was primarily driven by subscription revenue growth, including pricing benefits from Streaming 2.0 agreements, along with strong physical sales, higher ad-supported streaming revenue, and increased Music Publishing digital revenue.

Recorded Music

Recorded Music revenue of €2,559 million grew 15.1% year-over-year, or 14.7% in constant currency and 7.4% excluding Downtown. Subscription revenue of €1,422 million grew 20.7%, or 19.2% in constant currency and 9.5% excluding Downtown. The company said wholesale price increases and continued subscriber growth supported the performance, while market share headwinds moderated compared with the first half of 2026.

Ad-supported streaming revenue of €387 million grew 14.8%, or 13.5% in constant currency and 4.7% excluding Downtown, with growth across several key video and digital partners partially driven by better per-play rates, according to the release. Physical revenue of €392 million rose 15.0%, or 17.4% in constant currency both including and excluding Downtown, with broad-based strength in North America, Japan and Europe across frontline and catalog. Downloads and other digital revenue fell 15.4% to €33 million. License and other revenue of €325 million declined 0.9% year-over-year, as growth in synchronization and audiovisual revenue was more than offset by lower live and related income.

Recorded Music Adjusted EBITDA of €640 million grew 15.7%, or 14.9% in constant currency. Segment Adjusted EBITDA margin excluding Downtown expanded 1.2 percentage points to 26.2%, reflecting lower relative A&R expense and improved cost discipline across marketing and overhead, partly offset by pressure from revenue and repertoire mix, the company said.

Top sellers in the quarter included Mrs. Green Apple, Olivia Rodrigo, Stray Kids, Ariana Grande and The Beatles.

Publishing, Merchandising and Downtown

Music Publishing revenue of €590 million grew 8.7% year-over-year, or 7.5% in constant currency and 1.5% excluding Downtown. Digital revenue of €370 million rose 13.1%, reflecting subscription growth partially offset by softer ad-supported streaming revenue. Performance revenue of €118 million grew 2.6%. Synchronisation revenue of €64 million was flat in constant currency and declined 4.7% excluding Downtown, reflecting lower film and television activity partially offset by improved advertising synchs. Mechanical revenue of €26 million was flat.

Music Publishing Adjusted EBITDA of €136 million declined 2.9%, or 3.5% in constant currency, and segment margin excluding Downtown declined 1.5 percentage points to 24.2%, reflecting a timing benefit to expenses in the prior-year period.

Merchandising and Other revenue of €248 million declined 4.2%, or 4.6% in constant currency, primarily on lower touring income compared with a prior-year quarter that included more high-profile tours, partially offset by growth in direct-to-consumer revenue from the broader roll-out of the company’s ship-to-home merchandise program on certain tours. Segment Adjusted EBITDA of €11 million declined by €2 million, with margin down 0.6 percentage points to 4.4%.

Downtown contributed €195 million of revenue in the quarter, comprising €162 million in Recorded Music and €33 million in Music Publishing, and €13 million of Adjusted EBITDA at a 6.7% margin. Downtown’s results are consolidated from the acquisition date of February 20, 2026.

For the nine months ended September 30, 2026, revenue of €9,588 million grew 7.7% from €8,902 million, or 11.1% in constant currency and 5.5% excluding Downtown. Adjusted EBITDA of €2,039 million rose 2.0% from €2,000 million, or 4.8% in constant currency. Excluding Downtown, nine-month Adjusted EBITDA margin declined 0.4 percentage points year-over-year, which the company attributed to a higher contribution from artist and label services revenue within Recorded Music, an increase in corporate overhead partially due to higher professional fees, and a loss in Merchandising.

The quarter’s Adjusted EBITDA of €729 million reconciles from EBITDA of €672 million through €51 million of non-cash share-based compensation expenses and €6 million of integration and business transformation costs, the latter including integration costs related to the Downtown transaction and previously committed US listing preparation costs. UMG stated that EBITDA and Adjusted EBITDA are non-IFRS alternative performance indicators, with definitions and reconciliations included in the release appendix, and that the release contains inside information within the meaning of article 7(1) of the EU Market Abuse Regulation.

The company scheduled a conference call to discuss the results for 6:15PM CET on October 29, 2026, with a live audio webcast on investors.universalmusic.com and dial-in pre-registration for investors and analysts available under the Financial Reports tab.