Universal Music Group posts €2.9bn Q1 revenue, boosts buyback to €1bn

HILVERSUM: Universal Music Group reported first-quarter 2026 revenue of €2,900 million, flat year on year but up 8.1 per cent in constant currency, as streaming price changes, strong physical sales and a boost from Downtown Music Holdings helped offset currency headwinds.

Adjusted EBITDA came in at €636 million, down 3.8 per cent year on year but up 3.9 per cent in constant currency. Margins dipped 0.9 percentage points to 21.9 per cent, largely due to the consolidation of Downtown.

Recorded Music remained a key growth driver, with subscription revenue rising 4.1 per cent year on year, or 12.5 per cent in constant currency. Streaming revenue grew 5.0 per cent, while physical sales jumped 12.7 per cent, with notable strength in markets such as Japan and the US. Downloads, however, continued their industry-wide decline, falling 5.6 per cent.

Music Publishing revenue increased 7.0 per cent in constant currency, supported by a 15.3 per cent surge in synchronisation income across advertising, trailers and film. Digital revenue rose 4.8 per cent, while mechanical revenue climbed 12.0 per cent, again driven by physical formats.

The quarter’s top sellers included BTS, Taylor Swift and Morgan Wallen, alongside strong catalogue and soundtrack performances.

On capital allocation, UMG announced plans to increase its share buyback programme to €1 billion. The company will complete an ongoing €500 million buyback before launching an additional €500 million tranche, subject to shareholder approval.

It also confirmed plans to monetise half of its stake in Spotify, with proceeds set to support the buyback programme while maintaining financial flexibility.

Universal Music Group chairman and chief executive officer Lucian Grainge said, “We delivered a solid quarter of growth in our core businesses, complemented by strategic investments in fast-growing areas. Our focus remains on supporting artists, engaging fans globally and driving long-term value.”

Universal Music Group chief financial officer Matt Ellis added, “We are driving sustained revenue growth while expanding EBITDA and reinvesting for the future. The enhanced buyback and partial monetisation of our Spotify stake will strengthen shareholder value.”

While merchandising revenue dipped 1.9 per cent due to timing of releases, touring income from major acts helped cushion the impact.

With steady gains in streaming economics, a sharper capital strategy and continued investment in artist services, UMG appears to be tuning its business for long-term growth in an evolving music landscape.