Universal Music Group N.v. · EURONEXT:UMG
Universal Music — FY2025 Earnings Presentation
35 slides from Universal Music's earnings presentation, 2026
Slide 1: Fourth Quarter & Full Year Ended December 31, 2025
Universal Music Group Fourth Quarter & Full Year Ended December 31, 2025
Slide 2: Important Information
Important Information THIS PRESENTATION MAY CONTAIN STATEMENTS THAT CONSTITUTE FORWARD-LOOKING STATEMENTS RELATING TO THE BUSINESS, FINANCIAL PERFORMANCE AND RESULTS OF UNIVERSAL MUSIC GROUP N.V. (THE “COMPANY” OR “UMG”) AND THE INDUSTRY IN WHICH THE COMPANY OPERATES. SUCH FORWARD-LOOKING STATEMENTS
Slide 3: Sir Lucian Grainge, Chairman & Chief Executive Officer
Sir Lucian Grainge Chairman & Chief Executive Officer Universal Music Group
Slide 4: FY 2025 Consolidated Results
FY 2025 Consolidated Results REVENUE ADJUSTED EBITDA +8.7% +8.6% € 2,810 € 12,507 € 2,661 € 11,834 FY24 FY25 FY24 FY25 Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency.
Slide 5: 9 of the Top 10 Global Recording Artists of 2025
9 of the Top 10 Global Recording Artists of 2025 Top 10 Global Artists 1. Taylor Swift* 6. Kendrick Lamar* 2. Stray Kids 7. Morgan Wallen 3. Drake* 8. Sabrina Carpenter* 4. The Weeknd* 9. 8/10 Billie Eilish* 5. Bad Bunny* 10. Lady Gaga * Universal Music Publishing Group Songwriter Source: IFPI Globa
Slide 6: UMG Is Consistently Home to the World's Best-Selling Recording Artists
UMG Is Consistently Home to the World’s Best-Selling Recording Artists Top 10 Global Artists 2019 2020 2021 2022 2023 2024 2025 9/10 9/10 9/10 9/10 8/10 8/10 7/10 Source: IFPI Global Charts
Slide 7: 2025 Artist Success
2025 Artist Success Spotify Apple Music YouTube TikTok 4 of the TOP 5 7 of the TOP 10 7 of the TOP 10 7 of the TOP 10 Global Artists Global Songs U.S. Songs Global Artists Lady Gaga, Bruno Mars Taylor Swift Kendrick Lamar, SZA Gracie Abrams #1 #1 KATSEYE “Die With A Smile” The Weeknd “luther” “That’
Slide 8: Success Across Multiple Genres and Geographies
Success Across Multiple Genres and Geographies Taylor Swift - The Life of a Showgirl Olivia Dean - The Art of Loving King & Prince - STARRING #1 12 Weeks #1 9 Weeks #1 8th #1 Album at #1 in the U.S. at #1 in Australia on Japan’s Oricon Chart 7 Weeks 7 Weeks at #1 in Australia at #1 in the U.K. 3 Wee
Slide 9: UMG Artists Win Big at 2026 Grammy and BRIT Awards
UMG Artists Win Big at 2026 Grammy and BRIT Awards Kendrick Lamar Olivia Dean Lola Young Sam Fender 27 Record of the Year 4 of 5 Best New Artist Best Pop Solo Song of the Year CAREER MOST RECENT Performance GRA MMY BEST N EW ARTIST WINS Best Melodic Rap WINNERS ARE UMG ARTISTS Artist of the Year Alt
Slide 10: Sir Lucian Grainge
Sir Lucian Grainge Chairman & Chief Executive Officer Universal Music Group
Slide 11: Executing on Strategy in Four Key Areas
Executing on Strategy in Four Key Areas 1. 2. Expand label and Accelerate presence in artist services high-potential music markets 3. 4. Strengthen Grow portfolio of direct-to-consumer and responsible AI partners superfan initiatives
Slide 12: New & Expanded Services Cover Entire Music Ecosystem
New & Expanded Services Cover Entire Music Ecosystem Artist-Driven Label & Artist Frontline Resources & Tools Services Labels Digital Sales & Financing Distribution Commercial Long-term Artist Bespoke Catalog Marketing Development Development Content & Catalog ECommerce Release Operations Marketing
Slide 13: Expanding Global Footprint – India Example
Expanding Global Footprint – India Example Most recently announced
Slide 14: Executing on Strategy in Four Key Areas
Executing on Strategy in Four Key Areas 1. 2. Expand label and Accelerate presence in artist services high-potential music markets 3. 4. Strengthen Grow portfolio of direct-to-consumer and responsible AI partners superfan initiatives
Slide 15: Stimulating Superfan Category
Stimulating Superfan Category >1,600 UMG D2C Stores Most recently announced
Slide 16: Executing on Strategy in Four Key Areas
Executing on Strategy in Four Key Areas 1. 2. Expand label and Accelerate presence in artist services high-potential music markets 3. 4. Strengthen Grow portfolio of direct-to-consumer and responsible AI partners superfan initiatives
Slide 17: Expanding Portfolio of Innovative AI Partners
Expanding Portfolio of Innovative AI Partners Most recently announced
Slide 18: Driving an Interconnected Growing Ecosystem
Driving an Interconnected Growing Ecosystem Streaming 2.0 Label & Artist Services Direct-to- World’s Most High-potential consumer Successful Music Markets Recording Artists, Songwriters & Catalogs Superfan Responsible AI Platforms Innovation
Slide 19: Michael Nash
Michael Nash Executive Vice President, Chief Digital Officer Universal Music Group
Slide 20: AI Music Engagement By Consumers is Minimal; UMG Strategy Nullifies Revenue Impact
AI Music Engagement By Consumers is Minimal; UMG Strategy Nullifies Revenue Impact • Top 10 AI Acts generated insignificant consumption Top 10 AI Acts of 2025 identified by Billboard and Luminate “AI Top 10” account for “AI Top 10” Global Rank # Uploader Streams Global Streaming Rank Positions < 0.0
Slide 21: AI Strategy and UMG Research: Global Consumer Attitudes on AI & Music
AI Strategy and UMG Research: Global Consumer Attitudes on AI & Music 68% 79% Interest in AI-in-Music Possibilities Among of consumers engaged with of consumers say human Consumers Open to AI in Music, Global Avg.* AI use it for search: half creativity is essential to report music-related queries mu
Slide 22: Matt Ellis
Matt Ellis Chief Financial Officer Universal Music Group
Slide 23: FY25 Consolidated Results
FY25 Consolidated Results REVENUE ADJUSTED EBITDA ADJUSTED EBITDA ADJUSTED DILUTED MARGIN EPS +8.7% +8.6% +0.0pp +7.3% € 2,810 22.5% 22.5% € 12,507 € 2,661 € 11,834 € 1.03 € 0.96 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currenc
Slide 24: Items Impacting Comparability
Items Impacting Comparability Total UMG Recorded Music FY25 FY24 FY25 FY24 4Q25 Total 4Q24 Total 4Q25 Total 4Q24 Total Revenue Revenue DSP Catch-Up Income - - 20 - DSP Catch-Up Income - - 20 - Legal Settlements - - 40 40 Legal Settlements - - 32 32 Legal Resolution 45 45 - - Legal Resolution 45 45 -
Slide 25: 4Q25 Consolidated Results
4Q25 Consolidated Results REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN +10.6% +11.2%* +6.4% +8.6%* -0.7pp -0.4pp* € 810 23.2% 22.5% € 3,605 € 799 € 3,439 4Q24 4Q25 4Q24 4Q25 4Q24 4Q25 Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency. *Revenue, Adjusted EBITDA, and
Slide 26: Recorded Music
Recorded Music 4Q REVENUE FY25 REVENUE FY25 ADJUSTED FY25 ADJUSTED EBITDA EBITDA MARGIN +13.9% +14.4%* +9.3% +9.1%* +9.6% +9.7%* +0.0pp +0.2pp* € 2,769 € 9,456 € 8,901 € 2,566 25.6% 25.6% € 2,423 € 2,275 4Q24 4Q25 FY24 FY25 FY24 FY25 FY24 FY25 Note: € in Millions; All growth rates are in constant cu
Slide 27: Recorded Music Revenue
Recorded Music Revenue 4Q25 Recorded Music Revenue Breakdown FY25 Recorded Music Revenue Breakdown +7.7% +9.3% +107.3% +21.3% +18.1% +8.6% +4.7% +34.5% +11.4% +11.0% +9.6%* -2.4%* +26.8%* +8.6%* +13.6%* 4Q24 4Q25 € 4,884 FY24 FY25 € 1,257 € 524 € 516 € 387 € 1,435 € 1,475 € 1,428 € 85 € 234 Subscrip
Slide 28: Music Publishing
Music Publishing 4Q25 REVENUE FY25 REVENUE FY25 ADJUSTED EBITDA FY25 ADJUSTED EBITDA MARGIN +1.4% +2.8%* +9.3% +9.8%* +10.0% +10.5%* +0.2pp +0.2pp* € 613 € 2,260 € 549 € 593 € 2,121 € 511 24.1% 24.3% 4Q24 4Q25 FY24 FY25 FY24 FY25 FY24 FY25 Note: € in Millions; All growth rates are in constant curren
Slide 29: Merchandising & Other
Merchandising & Other 4Q25 REVENUE FY25 REVENUE FY25 ADJUSTED FY25 ADJUSTED EBITDA EBITDA MARGIN 0.0% 0.0% -61.0% -3.1pp € 842 € 811 € 264 € 248 Axis Title € 43 5.1% € 16 2.0% 4Q24 4Q25 FY24 FY25 FY24 FY25 FY24 FY25 Axis Title Note: € in Millions; All growth rates are in constant currency.
Slide 30: Net Profit & EPS
Net Profit & EPS NET PROFIT(1) ADJUSTED NET EPS - BASIC ADJUSTED EPS - PROFIT DILUTED -26.5% +7.0% -26.3% +7.3% € 1.14 € 2,086 € 1.03 € 0.96 € 1,907 € 1,782 € 0.84 € 1,533 2024 2025 2024 2025 2024 2025 2024 2025 Note: Net Profit € Millions; All growth rates are as reported. (1) Net Profit reflects N
Slide 31: Investment drives long-term value
Investment drives long-term value Investment Priorities • Core Business: • Royalty advances to sign and extend deals with artists, songwriters, and distribution and administration partners 2019-2025 CAGRs • Recoupable against future royalties; deals most often structured to extend until recouped 14%
Slide 32: FY25 Free Cash Flow
• €116m tax paid primarily to cover employee withholding tax on FY25 Free Cash Flow equity grants; lessens dilutive impact of equity plan • Catalog investments shown net of divestments, including catalogs transferred to Chord, and other intangible sales • Dividend policy: 50% of net income adjusted
Slide 33: Investing Activity
Investing Activity €1,051 Other Investments • 2025 spending on strategic initiatives included: €854 • Small acquisitions including in Thailand, Vietnam, Indonesia and Japan • Strategic investments related to certain superfan initiatives € 602 • €104 million of further funding for Chord € 379 € 92 €
Slide 34: Downtown Music Acquisition
Downtown Music Acquisition 2025 Revenue: 2025 EBITDA: €891 million €40 million Note: Downtown revenue and EBITDA converted from USD to EUR using the average 2025 FX rate of 0.89.
Slide 35: Q&A
Q&A Sir Lucian Grainge Chairman & Chief Executive Officer Matt Ellis Chief Financial Officer Boyd Muir Chief Operating Officer Michael Nash Chief Digital Officer