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Universal Music Group (UMG) investor relations material

Universal Music Group Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary31 Jul, 2025

Executive summary

  • Revenue increased 6.9% year-over-year in H1 2025 to €5,881 million, with adjusted EBITDA up 8.5% to €1,336 million and net profit up 56.7% to €1,432 million; EPS rose to €0.78 from €0.50.

  • Major global commercial and creative successes, with top chart positions in the US, Japan, UK, Germany, and other key markets.

  • Strategic focus on health and wellness, AI-driven innovation, and brand extension, including partnerships with Apple and Liquidex Capital, and multiple AI-enabled technology patents filed.

  • Ongoing organizational redesign delivering significant cost savings, targeting €250 million in run-rate savings by FY27.

  • Interim dividend of €440 million (€0.24 per share) declared for H1 2025.

Financial highlights

  • Q2 2025 revenue grew 4.5% year-over-year to €2,980 million; adjusted EBITDA up 7.3% to €676 million, with margin expansion to 22.7%.

  • H1 2025 adjusted EBITDA margin improved by 0.3pp to 22.7%; adjusted net profit grew 9% to €882 million; adjusted EPS €0.48 vs €0.44 in 2024.

  • Free cash flow for H1 2025 rose 25.3% year-over-year to €947 million.

  • Net profit margin increased significantly, with net profit up 56.7% year-over-year.

  • Net cash from operating activities before taxes up 11.9% to €488 million.

Outlook and guidance

  • Streaming 2.0 partnerships with Spotify and Amazon expected to drive future growth, with benefits not yet reflected in current results.

  • Midterm guidance targets 8–10% subscription growth, supported by new deal structures.

  • Phase 2 of organizational redesign expects €40 million in realized cost savings in H2 2025, with all actions to be completed by end of 2026.

  • Full implementation of redesign is expected by year-end 2026, with €250 million in run-rate cost savings by FY27.

  • Physical sales expected to remain flat for the year due to tough comps.

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Frequently asked questions

One of the world's richest music catalogs

With signed artists and writers like Taylor Swift, The Weeknd, Drake, and Billie Eilish and ownership rights to back catalogs from the likes of Elvis Presley and Sting, Universal has become the home for many of the world's most popular music artists.

Universal, or UMG, is the largest of the so-called Big Three record labels, alongside Sony Music and Warner Music Group, which has a combined market share of roughly 60-70 percent. UMG's long history of music recording and publishing dates back all the way to 1898 and the German record label Deutsche Grammophon.

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