Universal Music Group N.V. Reports Financial Results for the First Quarter Ended March 31, 2026 USA - English USA - English

Announces Authorizations for Additional Share Buyback and Monetization of a Portion of Spotify Stake

Q1 2026 Results Highlights 1

This press release includes certain alternative performance indicators which are not defined in the IFRS Accounting Standards ('IFRS') issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release.

HILVERSUM, The Netherlands, April 29, 2026 /PRNewswire/ -- Universal Music Group N.V. ("UMG" or "the Company") today announced its financial results for the first quarter ended March 31, 2026.

Sir Lucian Grainge, Chairman and Chief Executive Officer of UMG, said, "We delivered a solid quarter of growth in our core businesses, complemented by our strategic development and investment in fast-growing areas of the industry. We continue to build the most successful music company in history by attracting the world's top talent, engaging fans globally, and delivering long-term value for stakeholders. Central to that mission is fostering an environment that protects artists and songwriters, champions human creativity, and embraces innovation at a pivotal moment for our industry."

Matt Ellis, UMG's CFO, said, "Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future. In addition, the important steps we are announcing today to increase our share buyback authorization and monetize a portion of our equity stake in Spotify will lead to enhanced shareholder value while maintaining the flexibility the Company requires to drive further success."

UMG Results

Three Months Ended March 31,

(in millions of euros)

2026 1

2026 excl.

Downtown

2025

YoY

const.

const. excl.

Downtown

(unaudited)

Revenue

2,900

2,814

2,901

0.0 %

8.1 %

4.9 %

EBITDA

571

568

603

(5.3 %)

2.1 %

1.6 %

EBITDA margin

19.7 %

20.2 %

20.8 %

(1.1pp)

(0.6pp)

Adjusted EBITDA

636

633

661

(3.8 %)

3.9 %

3.4 %

Adjusted EBITDA margin

21.9 %

22.5 %

22.8 %

(0.9pp)

(0.3pp)

Downtown results included are from the date of acquisition on February 20, 2026.

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. Constant currency is calculated by taking current year results and comparing against prior year results restated at current year rates.

Q1 2026 Results

Revenue for the first quarter of 2026 grew 8.1% in constant currency, with the consolidation of Downtown as of February 20, 2026. Excluding Downtown, revenue grew 4.9% in constant currency with improvement in Recorded Music and Music Publishing due to:

Adjusted EBITDA grew 3.9% in constant currency. Excluding Downtown, Adjusted EBITDA grew 3.4% in constant currency and Adjusted EBITDA margin declined 0.3pp year-over-year due to:

Recorded Music

Three Months Ended March 31,

(in millions of euros)

2026 1

2026 excl.

Downtown

2025

YoY

const.

const. excl.

Downtown

(unaudited)

Subscriptions and streaming revenue

1,642

1,576

1,605

2.3 %

10.9 %

6.4 %

of which subscription

1,303

1,249

1,252

4.1 %

12.5 %

7.9 %

of which streaming

339

327

353

(4.0 %)

5.0 %

1.2 %

Downloads and other digital revenue

(15.0 %)

(5.6 %)

(11.1 %)

Physical revenue

310

300

3.3 %

12.7 %

License and other revenue

267

263

296

(9.8 %)

(3.6 %)

(5.1 %)

Recorded Music revenues

2,253

2,181

2,241

0.5 %

8.9 %

5.4 %

EBITDA

525

521

538

(2.4 %)

5.2 %

4.4 %

EBITDA margin

23.3 %

23.9 %

24.0 %

(0.7pp)

(0.1pp)

Adjusted EBITDA

565

561

575

(1.7 %)

6.0 %

5.3 %

Adjusted EBITDA margin

25.1 %

25.7 %

(0.6pp)

0.0pp

1 Downtown results included are from the date of acquisition on February 20, 2026.

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency.

Q1 2026

Recorded Music revenue grew 8.9% in constant currency, and grew 5.4% in constant currency excluding Downtown:

Recorded Music Adjusted EBITDA was up 6.0% in constant currency, and grew 5.3% in constant currency excluding Downtown, while Adjusted EBITDA margin was flat excluding Downtown, reflecting:

Music Publishing

Three Months Ended March 31,

(in millions of euros)

2026 1

2026 excl.

Downtown

2025

YoY

const.

const. excl.

Downtown

(unaudited)

Performance revenue

115

114

0.9 %

6.5 %

5.6 %

Synchronisation revenue

6.3 %

15.3 %

13.6 %

Digital revenue

328

317

339

(3.2 %)

4.8 %

1.3 %

Mechanical revenue

7.7 %

12.0 %

Other revenue

8.3 %

18.2 %

9.1 %

Music Publishing revenues

552

538

555

(0.5 %)

7.0 %

4.3 %

EBITDA

131

132

126

4.0 %

12.0 %

12.8 %

EBITDA margin

23.7 %

24.5 %

22.7 %

1.0pp

1.8pp

Adjusted EBITDA

135

136

130

3.8 %

11.6 %

12.4 %

Adjusted EBITDA margin

24.5 %

25.3 %

23.4 %

1.1pp

1.9pp

1 Downtown results included are from the date of acquisition on February 20, 2026.

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency.

Q1 2026

Music Publishing revenue grew 7.0% in constant currency, and grew 4.3% in constant currency excluding Downtown:

Music Publishing Adjusted EBITDA increased 11.6% in constant currency, and grew 12.4% in constant currency excluding Downtown. Excluding Downtown, Music Publishing Adjusted EBITDA margin grew 1.9pp as a result of:

Merchandising and Other

Three Months Ended March 31,

(in millions of euros)

2026

2026 excl.

Downtown

2025

YoY

const.

excl. Downtown

(unaudited)

Merchandising and other revenues

101

112

(9.8 %)

(1.9 %)

EBITDA

(10)

(4)

(150.0 %)

EBITDA margin

(9.9 %)

(3.6 %)

(6.3pp)

Adjusted EBITDA

(10)

(4)

(150.0 %)

(233.3 %)

Adjusted EBITDA margin

(9.9 %)

(3.6 %)

(6.3pp)

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency.

Q1 2026

Merchandising and Other revenue decreased 1.9% in constant currency, primarily driven by:

Merchandising and Other Adjusted EBITDA loss widened in the first quarter of 2026 and Merchandising and Other Adjusted EBITDA margin declined 6.3pp to (9.9%) due to:

Update on Capital Allocation and Management Initiatives

As a company operating in a fast-evolving sector, UMG and its Board of Directors (the "Board") continuously assess the Company's business and financial strategy. Today, the Company can update shareholders on certain capital allocation and management initiatives that the Board and management have been considering since 2025:

Items Impacting Comparability of Results

Downtown Results

ANALYSIS OF REVENUES AND OPERATING RESULTS BY BUSINESS SEGMENT

Q1 2026

(in millions of euros)

UMG excl.

Downtown

Downtown 1

UMG Total

(unaudited)

Revenues

Recorded Music

2,181

2,253

Music Publishing

538

552

Merchandising & Other

101

Total UMG 2

2,814

2,900

Adjusted EBITDA

Recorded Music

561

565

Music Publishing

136

(1)

135

Merchandising & Other

(10)

Total UMG

633

636

Adjusted EBITDA margin

22.5 %

3.5 %

21.9 %

EBITDA

568

571

EBITDA margin

20.2 %

3.5 %

19.7 %

1 Downtown results included are from the date of acquisition on February 20, 2026.

2 Total UMG revenues includes the elimination of intercompany revenues.

RECORDED MUSIC

Q1 2026

(in millions of euros)

UMG excl.

Downtown

Downtown 1

UMG Total

(unaudited)

Subscriptions and streaming revenue

1,576

1,642

of which subscription

1,249

1,303

of which streaming

327

339

Downloads and other digital revenue

Physical revenue

310

License and other revenue

263

267

Recorded Music revenues

2,181

2,253

EBITDA

521

525

EBITDA margin

23.9 %

5.6 %

23.3 %

Adjusted EBITDA

561

565

Adjusted EBITDA margin

25.7 %

5.6 %

25.1 %

1 Downtown results included are from the date of acquisition on February 20, 2026.

MUSIC PUBLISHING

Q1 2026

(in millions of euros)

UMG excl.

Downtown

Downtown 1

UMG Total

(unaudited)

Performance revenue

114

115

Synchronisation revenue

Digital revenue

317

328

Mechanical revenue

Other revenue

Music Publishing revenues

538

552

EBITDA

132

(1)

131

EBITDA margin

24.5 %

(7.1 %)

23.7 %

Adjusted EBITDA

136

(1)

135

Adjusted EBITDA margin

25.3 %

(7.1 %)

24.5 %

1 Downtown results included are from the date of acquisition on February 20, 2026.

Conference Call Details

The Company will host a conference call to discuss these results on Wednesday, April 29, 2026 at 6:15PM CEST. A link to the live audio webcast will be available on investors.universalmusic.com and a link to the replay will be available after the call.

While listeners may use the webcast, a dial-in telephone number is required for investors and analysts to ask questions. Investors and analysts interested in asking questions can pre-register for a dial-in line at investors.universalmusic.com under the "Financial Reports" tab.

Cautionary Notice

This press release is published by Universal Music Group N.V. and contains inside information within the meaning of article 7(1) of Regulation (EU) No 596/2014 (Market Abuse Regulation).

Forward-looking statements

This press release may contain statements that constitute forward-looking statements with respect to UMG's financial condition, results of operations, business, strategy and plans. Such forward-looking statements may be identified by the use of words such as 'profit forecast', 'expect', 'estimate', 'project', 'anticipate', 'should', 'intend', 'plan', 'probability', 'risk', 'target', 'goal', 'objective', 'will', 'endeavour', 'optimistic', 'prospects' and similar expressions or variations on such expressions. Although UMG believes that such forward-looking statements are based on reasonable assumptions, they are not guarantees of future performance. Actual results may differ materially from such forward-looking statements as a result of a number of risks and uncertainties, many of which are related to factors that are outside UMG's control, including, but not limited to, UMG's inability to compete successfully and to identify, attract, sign and retain successful recording artists and songwriters, failure of streaming and subscription adoption or revenue to grow or to grow less rapidly than anticipated, UMG's reliance on digital service providers, UMG's inability to execute its business strategy, the global nature of UMG's operations, changes in global economic and financial conditions, UMG's inability to protect its intellectual property and against piracy, challenges related to generative AI, UMG's inability to attract and retain key personnel, UMG's restructuring and reorganization activities, UMG's acquisitions and other investments, changes in laws and regulations (and UMG's compliance therewith) and the other risks that are described in our 2025 Annual Report. Accordingly, UMG cautions readers against placing undue reliance on such forward-looking statements. Such forward-looking statements are made as of the date of this press release. UMG disclaims any intention or obligation to provide, update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Alternative Performance Indicators

This press release includes certain alternative performance indicators which are not defined in IFRS Accounting Standards issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release.

About Universal Music Group

At Universal Music Group (EURONEXT: UMG), we exist to shape culture through the power of artistry. UMG is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising and audiovisual content. Featuring the most comprehensive catalogue of recordings and songs across every musical genre, UMG identifies and develops artists and produces and distributes the most critically acclaimed and commercially successful music in the world. Committed to artistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. For more information on Universal Music Group N.V. visit www.universalmusic.com.

Contacts

Media

James Steven - [email protected]

Investors

Erika Begun - [email protected]

Upcoming Calendar

Annual General Meeting of Shareholders: May 13, 2026

Appendix

Non-IFRS Alternative Performance Indicators and Reconciliations

Reconciliation of Adjusted EBITDA by Segment

(in millions of euros)

Recorded

Music 1

Music

Publishing 1

Merchandising

and Other

Corporate

Centres

Total UMG 1

(unaudited)

Three months ended March 31, 2026

EBITDA

525

131

(10)

(75)

571

Non-cash share-based compensation expenses

Integration and business transformation costs 2

Adjusted EBITDA

565

135

(10)

(54)

636

Three months ended March 31, 2025

EBITDA

538

126

(4)

(57)

603

Non-cash share-based compensation expenses

Integration and business transformation costs 2

Adjusted EBITDA

575

130

(4)

(40)

661

1 Downtown results included are from the date of acquisition on February 20, 2026.

2 Includes integration costs related to the Downtown transaction and previously committed US listing preparation costs.

Definitions

In this press release, UMG presents certain financial measures when discussing UMG's performance that are not measures of financial performance or liquidity under IFRS ("non-IFRS"). These non-IFRS measures (also known as alternative performance indicators) are presented because management considers them important supplemental measures of UMG's performance and believes that they are widely used in the industry in which UMG operates as a means of evaluating a company's operating performance and liquidity. UMG believes that an understanding of its sales performance, profitability, financial strength and funding requirements is enhanced by reporting the following non-IFRS measures. All non-IFRS measures should be considered in addition to, and not as a substitute for, IFRS measures of operating and financial performance as described in this press release. In addition, it should be noted that other companies may have definitions and calculations for these non-IFRS measures that differ from those used by UMG, thereby affecting comparability.

EBITDA and EBITDA margin

UMG considers EBITDA and EBITDA margin, non-IFRS measures, to be relevant measures to assess its operating performance. It excludes restructuring expenses, which may impact period-to-period comparability. EBITDA margin is EBITDA divided by revenue.

To calculate EBITDA, the accounting impact of the following items is excluded from the Operating Profit:

i. amortisation of intangible assets;

ii. impairment of goodwill and other intangibles;

iii. depreciation of tangible assets including right of use assets;

iv. (gains)/losses on the sale of tangible assets, including right of use assets and intangible assets; and

v. restructuring expenses.

Adjusted EBITDA and Adjusted EBITDA margin

The difference between EBITDA and Adjusted EBITDA consists of non-cash share-based compensation expense, integration and business transformation costs and certain one-time items, that are deemed by management to be significant and incidental to normal business activity. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue.

UMG considers Adjusted EBITDA and Adjusted EBITDA margin, non-IFRS measures, to be relevant measures to assess its operating performance and performance of its operating segments excluding items that may be incidental to normal business activity and excluding non-cash share based compensation which may impact period-to-period comparability.