Universal Music Group (UMG) reported second-quarter 2026 revenue of €3.294 billion ($3.83 billion), a 10.5% year-over-year increase (13.3% in constant currency). The gains were driven by the consolidation of Downtown Music Holdings, benefits from Streaming 2.0 pricing, and strength across physical, licensing, and performance revenue.
Excluding the contribution from Downtown, constant-currency revenue grew 6.4%. Recorded Music revenue climbed 16.2% at constant currency to €2.516 billion ($2.93 billion), or 8.7% excluding Downtown.
Within Recorded Music, combined subscription and ad-supported streaming revenue rose 15.4% at constant currency to €1.757 billion ($2.04 billion). Subscription revenue alone increased 16.6% at constant currency to €1.368 billion ($1.59 billion), reflecting the Downtown consolidation and Streaming 2.0 pricing effects. Physical revenue grew 15.9%, while licensing and other revenue jumped 34.9% at constant currency.
Adjusted EBITDA was €674 million ($783.8 million), down 0.3% as reported but up 1.5% at constant currency. The EBITDA margin declined to 20.5%, which the company attributed to the Downtown consolidation, revenue and repertoire mix pressure in Recorded Music, and a merchandising loss.
Top sellers for the quarter included Noah Kahan, BTS, Olivia Rodrigo, Drake, and Olivia Dean.
“We’re delivering on our strategic plan, and working to further sharpen our execution, while capitalizing on the opportunities presented by new technologies and the ever-evolving music ecosystem. Our unique combination of global reach, local expertise, artist development, vast audio and visual IP and entrepreneurial culture positions UMG to deliver long-term growth, sustained value creation, and creative and commercial success for our artists and songwriters,” said Sir Lucian Grainge, Chairman and Chief Executive Officer of UMG.
