Universal Music Group (UMG) investor relations material

Executive summary

• Revenue grew 13.3% year-over-year in Q2 2026 to €3.3 billion, and 5.3% for H1 2026 to €6,194 million, driven by the Downtown acquisition and strong performance in Recorded Music and Music Publishing.

• Adjusted EBITDA increased 1.5% in Q2 2026 to €674 million, but declined 1.9% for H1 2026 to €1,310 million; adjusted EPS was €0.47 for H1 2026.

• Net profit attributable to equity holders dropped to €222 million from €1,432 million, mainly due to lower financial income from equity investments.

• Completed €500 million share buyback, declared €432 million interim dividend, and invested heavily in catalog and high-growth markets.

• Strategic focus on Streaming 2.0, AI partnerships, and expansion in China and India.

Financial highlights

• Q2 2026 revenue reached €3,294 million, up from €2,980 million in Q2 2025; H1 2026 revenue was €6,194 million, up from €5,881 million in H1 2025.

• Adjusted EBITDA margin for Q2 2026 was 20.5%, down from 22.7% in Q2 2025, due to Downtown consolidation and merchandising loss.

• Free cash flow for H1 2026 was €24 million, down from €163 million, mainly due to working capital, higher capex, and investment needs.

• Financial net debt increased to €4,131 million from €2,390 million at year-end 2025, mainly due to share buybacks, dividends, and the Downtown acquisition.

• Adjusted net profit for H1 2026 was €863 million, down 2.2% year-over-year but up 3.9% at constant currency.

Outlook and guidance

• Management expects stronger free cash flow in H2 2026 and sufficient liquidity for operational and investment needs.

• Organic-only revenue CAGR targeted at ~10% and EBITDA CAGR at ~11% from 2021-2025.

• Focus on ARPU growth and market penetration in China and India, with ongoing product innovation and superfan monetization.

• Music publishing expected to grow at mid-single digits near term.

• Ongoing cost savings program (€250 million target) with reinvestment in growth areas like AI.