Universal Music Group N.v. · EURONEXT:UMG
Universal Music — Q4 2023 Earnings Presentation
22 slides from Universal Music's earnings presentation, Feb 29, 2024
Slide 1: Universal Music Group
Universal Music Group Second Quarter & First Half Ended June 30, 2024
Slide 2: Important Information
Important Information Forward Looking Statements 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
Slide 3: Sir Lucian Grainge, Chairman & CEO
Sir Lucian Grainge Chairman & CEO Universal Music Group
Slide 4: 2Q24 Consolidated Results
2Q24 Consolidated Results REVENUE ADJUSTED EBITDA +9.6% +11.3% € 2,932 € 2,697 € 649 € 590 2Q23 2Q24 2Q23 2Q24 Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency, Adjusted EBITDA margin change in percentage points.
Slide 5: UMG is a Multi-Faceted Music-Entertainment Company
UMG is a Multi-Faceted Music-Entertainment Company Wide variety of recurring revenue streams Mix of established and emerging businesses Diverse creative and commercial initiatives across multiple countries and regions
Slide 6: 1H24 Strategic and Operational Highlights
1H24 Strategic and Operational Highlights Diversified revenue streams propel UMG towards continued sustainable growth Industry-leading track record in breaking new artists and taking established artists to new heights - creatively and commercially Proactively addressing the challenges and opportunit
Slide 7: Sir Lucian Grainge, Chairman & CEO
Sir Lucian Grainge Chairman & CEO Universal Music Group
Slide 8: New & Established Artists Achievements
New & Established Artists Achievements
Slide 9: 1H 2024 Global Chart Success
1H 2024 Global Chart Success U.S. U.K. Japan 11of the TOP 15 8 of the TOP 10 3 of the TOP 5 Albums including the Albums Artists TOP 3 Taylor Swift x4 Noah Kahan #1 Mrs. GREEN APPLE Albums back number Olivia Rodrigo Ariana Grande Ado #1 Taylor Swift Billie Eilish Morgan Wallen No. 1 for Noah Kahan 6
Slide 10: Responsibly Embracing A.I. Advancements
Responsibly Embracing A.I. Advancements • Enhance & amplify human creativity • Protect against harmful A.I. • Advance musical innovation • Safeguard UMG, its artists • Expand audio production & sound and the music industry technology responsibly
Slide 11: Capital Markets Day, Abbey Road Studios, September 17, 2024
Universal Music Group Oa Capital Markets Day wm De Abbey Road Studios September 17 London 2024.
Slide 12: Boyd Muir, EVP, CFO & President of Operations
Boyd Muir EVP, CFO & President of Operations Universal Music Group
Slide 13: 2Q24 Consolidated Results
2Q24 Consolidated Results REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN +9.6% +11.3% +0.2pp € 2,932 22.1% 21.9% € 2,697 € 649 € 590 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency, Adjusted EBITDA margin change in percentage points.
Slide 14: 1H24 Consolidated Results
1H24 Consolidated Results REVENUE ADJUSTED EBITDA ADJUSTED EBITDA ADJUSTED EPS* MARGIN +8.8% +13.4% +0.8pp +4.8% € 0.44 € 0.42 € 1,240 € 5,526 € 5,148 22.4% € 1,112 21.6% 1H23 1H24 1H23 1H24 1H23 1H24 1H23 1H24 Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency, Adjus
Slide 15: Recorded Music
Recorded Music 2Q24 REVENUE 1H24 REVENUE 1H24 ADJUSTED 1H24 ADJUSTED EBITDA EBITDA MARGIN +10.2% +11.2%* +11.0% +6.8% +6.3% +11.9% +1.2pp € 4,190 € 4,003 € 1,065 25.4% 24.2% € 969 € 2,200 € 2,080 2Q23 2Q24 1H23 1H24 1H23 1H24 1H23 1H24 Note: € in Millions; All growth rates are in constant currency.
Slide 16: Recorded Music Revenue
Recorded Music Revenue 2Q24 2Q24 Recorded Music Revenue REVENUE Breakdown BREAKDOWN 1H24 1H24 Recorded Music Revenue REVENUE Breakdown BREAKDOWN 2Q23 2Q24 1H23 1H24 +12.8% +3.6% -35.7% +19.4% +13.6% +6.9% -3.9% -18.6% +14.4% +18.0% +9.6% +2.5% -16.8% +0.3% +10.2% € 1,137 € 2,260 € 343 € 357 € 315 €
Slide 17: Recorded Music Revenue: Regional Breakdown and Top Sellers
Recorded Music Revenue 1H24 Recorded Music Regional Breakdown Top Sellers 1H2024 EMEA € 1,199 Taylor Swift Taylor Swift Taylor Swift Morgan Wallen Noah Kahan +10.9% The Tortured Poets Department 1989 (Taylor’sVersion) Lover +9.2% North America € 2,202 Billie Eilish Taylor Swift Ariana Grande Taylor
Slide 18: Music Publishing
Music Publishing 2Q24 REVENUE 1H24 REVENUE 1H24 ADJUSTED 1H24 ADJUSTED EBITDA EBITDA MARGIN +12.3% +15.8%* +17.8% +1.0pp* +10.4% +14.3% +12.1% -0.4pp € 1,008 € 241 € 889 24.3% 23.9% € 511 € 216 € 464 2Q23 2Q24 1H23 1H24 1H23 1H24 1H23 1H24 Note: € in Millions; All growth rates are in constant curren
Slide 19: Merchandising & Other
Merchandising & Other 2Q24 REVENUE 1H24 REVENUE 1H24 ADJUSTED 1H24 ADJUSTED EBITDA EBITDA MARGIN +43.7% +29.7% -10.0% -2.3pp € 341 € 264 € 227 € 157 7.6% 5.3% € 20 € 18 2Q23 2Q24 1H23 1H24 1H23 1H24 1H23 1H24 Note: € in Millions; All growth rates are in constant currency.
Slide 20: Net Profit and EPS
• Dividend policy: 50% of net profits adjusted for certain non-cash items Net Profit and EPS • 1H24 interim dividend proposal: €439m (€0.24/share) NET PROFIT ADJUSTED NET EPS - BASIC ADJUSTED EPS* PROFIT* +46.2% +5.8% +47.1% +4.8% € 914 € 0.50 € 809 € 0.44 € 765 € 0.42 € 625 € 0.34 1H23 1H24 1H23 1H
Slide 21: Free Cash Flow
• €194m tax paid to cover employee withholding and other obligations, Free Cash Flow largely on transition grants; lessens dilutive impact of equity plan • Other investing activities includes previously disclosed deals: stake in Chord Music Partners, majority stake in Mavin Global, and minority inve
Slide 22: Q&A
Q&A Sir Lucian Grainge Chairman and CEO Boyd Muir EVP, CFO and President of Operations Michael Nash EVP, Chief Digital Officer
Universal Music Group — Q4 2023 Earnings Presentation on 6ix