Universal Music Group (UMG) reported third-quarter 2026 revenue of €3.394 billion, up 11.7% year on year at constant currency. The total included €195 million from Downtown Music Holdings, which UMG acquired on February 20, 2026; excluding Downtown, revenue grew 5.3%.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 9.0% at constant currency to €729 million. The adjusted EBITDA margin was 21.5%, down from 22.0% a year earlier. Excluding Downtown, adjusted EBITDA grew 7.0% and the margin increased 0.4 percentage points to 22.4%.
Recorded Music leads revenue growth
Recorded Music revenue reached €2.559 billion, up 14.7% at constant currency, or 7.4% excluding Downtown. Its main revenue lines included:
- Subscription streaming: €1.422 billion, up 19.2% at constant currency, or 9.5% excluding Downtown. UMG cited wholesale price increases and subscriber growth.
- Physical sales: €392 million, up 17.4% with or without Downtown, with growth across North America, Japan and Europe.
Top sellers included Mrs. Green Apple, Olivia Rodrigo, Stray Kids, Ariana Grande and The Beatles. Excluding Downtown, the segment’s adjusted EBITDA margin rose 1.2 percentage points to 26.2%, aided by lower relative artists and repertoire (A&R) costs and reduced marketing and overhead spending.
UMG Chief Financial Officer Matt Ellis said subscription revenue growth accelerated during the quarter and that the company remained focused on Downtown’s benefits and companywide efficiency.
Publishing grows as merchandising declines
Music Publishing revenue rose 7.5% at constant currency to €590 million, or 1.5% excluding Downtown. Digital growth was partly offset by softer ad-supported streaming revenue and weaker synchronization activity. Synchronization revenue was flat overall at constant currency but fell 4.7% excluding Downtown.
Merchandising and Other revenue declined 4.6% at constant currency to €248 million, primarily because touring income was lower than in the prior-year quarter, which featured more high-profile tours. Direct-to-consumer growth partly offset the decline.
