Universal Music posts nearly $1bn in Q2 profits

Universal’s total recorded quarterly revenues across all formats hit €1.65bn ($1.99bn), representing a 29.7% jump from Q2 last year, on an organic basis. Music streaming revenue accounted for €1.12bn of the total revenues, also boasting a 29.7% increase compared to the same period in 2020. Physical music sales made a giant leap with a 72.6% increase year-on-year to contribute €250m, while licensing income soared 24.3%.

In terms of quarterly publishing revenues, Universal gained 1.2% when compared to the same period 12 months ago, while merchandise and other sales formats increased 67.2%. Adding together both revenues from the recorded music and publishing divisions, UMG returned €2.02bn in Q2 – a staggering 25.5% increase.

Vivendi, Universal’s parent company, says the music corporation made an earnings before interest, taxes, depreciation and amortisation (EBITDA) profit of €822m in the first half of 2021, which indicated a 31.8% spike year-on-year. This figure also represented a half-yearly upshot in its EBITDA margin of 21.5% in 2021 compared to last year’s 18.8% margin in the same period.

K-pop group BTS returned the most revenue from the company’s recording artists in Q2. Universal only distributes the band’s Japanese-language recordings, while Sony Music and its subsidiary The Orchard distribute BTS’ output outside of South Korea. BTS was followed by Justin Bieber, Olivia Rodrigo, The Weeknd and Pop Smoke, respectively.

Vivendi, which currently owns 80% of UMG, is preparing to list 60% of the music company on the Euronext Amsterdam stock exchange by 21 September. Q2 could be the last in which the French company owns a majority share of UMG – after which Vivendi will retain 10%, pending the outcome of the listing. Vivendi has already sold 20% of UMG to a Tencent-led consortium. The remaining 10% will be owned by Pershing Square Holdings.

Download the full Vivendi report below (PDF).