Universal Music Group N.v. · EURONEXT:UMG
Universal Music — Q4 2024 Earnings Presentation
31 slides from Universal Music's earnings presentation, Mar 6, 2025
Slide 1: Fourth Quarter & Full Year Ended December 31, 2024
Universal Music Group Fourth Quarter & Full Year Ended December 31, 2024
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
Sir Lucian Grainge Chairman & Chief Executive Officer Universal Music Group
Slide 4: FY 2024 Consolidated Results
FY 2024 Consolidated Results REVENUE ADJUSTED EBITDA +7.6% +13.8% € 2,661 € 11,834 € 11,108 € 2,369 2023 2024 2023 2024 Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency, Adjusted Diluted EPS as reported.
Slide 5: 9 of the Top 10 Global Recording Artists of 2024
9 of the Top 10 Global Recording Artists of 2024 Top 10 Global Artists 1. Taylor Swift * 6. Zach Bryan 2. Drake * 7. The Weeknd * 3. Seventeen 8. Eminem * 4. Billie Eilish * 9. 8/10 Kendrick Lamar * 5. Stray Kids 10. Sabrina Carpenter * * Universal Music Publishing Group Songwriter Source: IFPI Glob
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 (2018-2024) 2018 2019 2020 2021 2022 2023 2024 9/10 9/10 9/10 7/10 8/10 8/10 7/10 Source: IFPI Global Charts
Slide 7: 2024 Global Artist Success
2024 Global Artist Success Spotify Apple Music Amazon Music 4 of the TOP 5 6 of the TOP 10 7 of the TOP 10 Global Artists Global Songs Most-Requested Artists via Alexa #1 Taylor Swift Post Malone #1 Kendrick Lamar “I Had Some Help The Weeknd “Not Like Us” (feat. Morgan Wallen)” Drake #1 Taylor Swift
Slide 8: 2024 U.S. Artist Success
2024 U.S. Artist Success Billboard YouTube Apple Music 8 of the TOP 10 Albums 6 of the TOP 10 14 of the TOP 20 including all TOP 5 Songs Songs #1 THE TORTURED POETS DEPARTMENT #1 Kendrick Lamar 1989 (Taylor’s Version) #1 Kendrick Lamar Morgan Wallen One Thing At A Time “Not Like Us” “Not Like Us” “T
Slide 9: 2024 Success In Industry's Top Music Markets
2024 Success In Industry’s Top Music Markets U.K. Japan Germany 7 of the TOP 10 Albums 5 of the TOP 10 5 of the TOP 10 Albums including all TOP 6 Songs including the TOP 2 Mrs. GREEN APPLE #1 THE TORTURED POETS DEPARTMENT “Lilac” Taylor Swift The Highlights #1 Short n’ Sweet THE TORTURED POETS DEPAR
Slide 10: 2024 Regional Success
2024 Regional Success Brazil Philippines Vietnam The TOP 2 No. 1 Songs Breakthrough Artist Song on Spotify Felipe e Rodrigo of the Year Son Tung M-TP Lauana Prado Dionela No. 1 Song on Apple Music Top Artist Henrique & Juliano Wren Evans The TOP 3 Artists #1 Son Tung M-TP HIEUTHUHAI Wren Evans Sourc
Slide 11: Global Artist Development
Global Artist Development Chappell Roan Sabrina Carpenter Lola Young Doechii Gracie Abrams
Slide 12: Streaming 2.0: Next Era of Streaming Growth
Streaming 2.0: Next Era of Streaming Growth Streaming 1.0 Streaming 2.0 Achieving scale Maximizing customer value Simple compelling proposition Segmented customer propositions Volume over value Artist-Centric principles Scale digital monetization Broader and deeper monetization Established market fo
Slide 13: Streaming 2.0: Next Era of Streaming Growth
Streaming 2.0: Next Era of Streaming Growth Universal Music Group and Spotify Universal Music Group and Amazon Strike New Multi-Year Agreement Music Expand Global Relationship COMPANIES TO ACCELERATE PRODUCT INNOVATION, REFLECTS NEW ERA IN MUSIC STREAMING, INCLUDING ADVANCE MUSIC MONETIZATION AND DE
Slide 14: Why Independents Choose Virgin Music
Why Independents Choose Virgin Music Standalone Global Allows independent sector to benefit from expertise and resources of Infrastructure world’s leading music company Run By Music Better understanding of the needs of the independent sector Entrepreneurs Services To World-class services organizatio
Slide 15: Virgin Music Group Agrees To Acquire Downtown Music
Virgin Music Group Agrees To Acquire Downtown Music
Slide 16: Expanding Global Reach
Expanding Global Reach South Asia Ghana China Japan
Slide 17: Sir Lucian Grainge
Sir Lucian Grainge Chairman & Chief Executive Officer Universal Music Group
Slide 18: Boyd Muir
Boyd Muir Chief Operating Officer & Chief Financial Officer Universal Music Group
Slide 19: FY 2024 Consolidated Results
FY 2024 Consolidated Results REVENUE ADJUSTED EBITDA ADJUSTED EBITDA ADJUSTED DILUTED MARGIN EPS +7.6% +13.8% +1.2pp +9.1% € 2,661 22.5% € 11,834 21.3% € 11,108 € 2,369 € 0.96 € 0.88 2023 2024 2023 2024 2023 2024 2023 2024 Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant cur
Slide 20: Items Impacting Comparability
Items Impacting Comparability Total UMG Recorded Music 4Q24 FY24 Total 4Q23 FY23 Total Revenue 4Q24 FY24 Total 4Q23 FY23 Total DSP Catch-Up Income 20 - - - Revenue Legal Settlements 32 32 - - Adjusted EBITDA CRB Phonorecords III Accrual - - - 53 Legal Provision - - (15) (15) DSP Catch-Up Income 20 -
Slide 21: 4Q24 Consolidated Results
4Q24 Consolidated Results REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN +7.9% +6.1%* +19.1% +10.5%* +2.1pp +0.8pp* 23.2% € 3,439 € 799 21.1% € 3,208 € 677 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 Note: € in Millions; Revenue and Adjusted EBITDA growth shown in constant currency. *Revenue growth is adjusted to
Slide 22: Recorded Music
Recorded Music 4Q REVENUE FULL YEAR REVENUE FULL YEAR FULL YEAR ADJUSTED EBITDA ADJUSTED EBITDA MARGIN +6.8% +4.6%* +6.4% +6.0%* +12.9% +10.7%* +1.5pp +1.0pp* € 8,901 € 2,275 € 2,566 € 8,461 25.6% € 2,421 € 2,042 24.1% 4Q23 4Q24 2023 2024 2023 2024 2023 2024 Note: € in Millions; All growth rates are
Slide 23: Recorded Music Revenue
Recorded Music Revenue 4Q Recorded Music Revenue Breakdown Full Year Recorded Music Revenue Breakdown +9.0% -4.1% +37.5% +3.4% +12.4% +9.1% +0.1% -11.8% +1.1% +13.5% +7.2%* +4.6%* +10.8%* 4Q23 4Q24 2023 2024 € 4,624 € 1,227 € 458 € 462 € 1,414 € 1,358 € 375 € 1,325 € 44 € 180 Subscription Streaming
Slide 24: Recorded Music Revenue
Top Sellers Recorded Music Revenue 2024 FY24 Recorded Music Regional Breakdown Taylor Swift Billie Eilish Sabrina Carpenter Morgan Wallen Taylor Swift Latin America Rest of World* The Tortured Poets 1989 Department (Taylor’s Version) € 401 € 284 +2.2% +19.7% North America € 4,587 Asia € 1,104 +6.8%
Slide 25: Music Publishing
Music Publishing 4Q REVENUE FULL YEAR REVENUE FULL YEAR ADJUSTED FULL YEAR ADJUSTED EBITDA EBITDA MARGIN +7.0% +5.6%* +9.0% +11.7%* +9.2% +11.5%* +0.1pp +0.0pp* € 613 € 2,121 € 511 € 576 24.0% 24.1% € 1,956 € 470 4Q23 4Q24 2023 2024 2023 2024 2023 2024 Note: € in Millions; All growth rates are in co
Slide 26: Merchandising & Other
Merchandising & Other 4Q REVENUE FULL YEAR REVENUE FULL YEAR ADJUSTED FULL YEAR ADJUSTED EBITDA EBITDA MARGIN +23.4% +19.3% -6.5% -1.6pp € 842 € 47 6.7% € 264 € 43 € 706 € 215 5.1% 4Q23 4Q24 2023 2024 2023 2024 2023 2024 Note: € in Millions; All growth rates are in constant currency.
Slide 27: Net Profit & EPS
Net Profit & EPS NET PROFIT ADJUSTED NET EPS - BASIC ADJUSTED EPS - PROFIT DILUTED +65.7% +9.6% +65.2% +9.1% € 1.14 € 2,086 € 1,782 € 1,626 € 0.96 € 0.88 € 0.69 € 1,259 2023 2024 2023 2024 2023 2024 2023 2024 Note: Net Profit € Millions; All growth rates are as reported.
Slide 28: FY24 Free Cash Flow
FY24 Free Cash Flow • Dividend policy: 50% of adjusted net income – 2H24 final dividend proposal: €512 million (€0.28/share) – FY24 dividend proposal: €951 million (€0.52/share) -7.6% YoY (186) 389 (5) +25.2% YoY (349) 131 -7.6% (102) YoY (81) 2 (266) €2,104 €1,775 (785) €1,574 -51.7% YoY €523 Opera
Slide 29: Investing Activity
Investing Activity Other Investments Catalog Investments Capital Expenditures Catalog Investments • Not required investment, opportunistic like M&A €1,051 • Multiple ways to finance: Chord Music Partners, operating cash flow, balance sheet capacity € 694 • 2024 catalog acquisitions include: a 2023 c
Slide 30: Balance Sheet & Liquidity
Balance Sheet & Liquidity Strong Balance Sheet Provides Strategic Flexibility Total Debt Cash • Net Debt / EBITDA <1x Net Debt • Investment grade rating Gross Debt € 2,651 • Average debt maturity: 4.5 years • 68% of gross debt at fixed rate € 2,104 € 553 € 413 Capital Allocation Priorities € 2,098 •
Slide 31: Q&A
Q&A Sir Lucian Grainge Chairman & Chief Executive Officer Boyd Muir Chief Operating Officer & Chief Financial Officer Michael Nash Executive Vice President & Chief Digital Officer
Universal Music Group — Q4 2024 Earnings Presentation on 6ix