Universal Music Group (UMG) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 7.3% to €5,526 million, with Q2 revenue up 9.6% to €2,932 million, driven by diversified business lines and strong artist performance.

• Adjusted EBITDA increased 11.5% in H1 2024 to €1,240 million, with margin expansion to 22.4%; Q2 adjusted EBITDA grew 11.3% to €649 million.

• Net profit attributable to equity holders rose 46.2% to €914 million in H1 2024, with EPS up to €0.50 and adjusted EPS at €0.44.

• UMG achieved significant global chart success, including 11 of the top 15 US albums and 8 of the top 10 UK albums in H1 2024.

• Continued investment in AI, digital innovation, and strategic partnerships, with a focus on protecting rights and fostering responsible growth.

Financial highlights

• Operating profit increased 27.9% to €756 million, with margin at 13.7%; EBITDA rose to €1,069 million, margin at 19.3%.

• Adjusted net profit was €809 million, up 5.8%, with adjusted net profit per share at €0.44.

• Free cash flow was a net outflow of €460 million in H1 2024, mainly due to higher royalty advances and strategic investments.

• Net cash from operating activities before tax was €436 million, down 38% year-over-year.

• Interim dividend of €439 million (€0.24 per share) declared for H1 2024, maintaining a 50% payout of adjusted net profits.

Outlook and guidance

• Management remains confident in long-term growth, emphasizing a multi-year strategic approach, ongoing product innovation, and responsible AI adoption.

• Royalty advances expected to materially step down in the second half of 2024, with free cash flow expected to improve.

• Further details on midterm expectations to be provided at Capital Markets Day in September 2024.