Universal Music Group Revenue Up For Fourth Quarter 2021, Profit Slips

Q4 Revenues Rise

UNIVERSAL MUSIC GROUP fourth quarter 2021 revenue jumped 19% year-over-year to €2.52 billion, (16% on a constant-currency basis), driven by a 16.2% constant-currency increase for recorded music subscription and streaming revenue.  Physical revenue rose 11.1%, with vinyl releases from TAYLOR SWIFT, ABBA, and THE BEATLES credited. SWIFT, ABBA, THE BEATLES, DRAKE, and BTS were top sellers overall for the quarter.

Music publishing revenue rose 31.6% to €408 million. Merchandising rose 45.4% to €141 million. Adjusted EBITDA increased 6.8% year-over-year in constant currency. Net profit attributable to equity holders of the parent fell from €1.4 billion to €886 million, attributed to revaluation of investments in companies like SPOTIFY and TENCENT MUSIC ENTERTAINMENT.

Chairman/CRO Sir LUCIAN GRANGE said, "2021 was yet another historic year for UMG. We helped our artists achieve extraordinary success -- including 8 of the IFPI's top 10 global artists of the year. In addition to strong performance in streaming, we drove new areas of opportunity for our artists -- ranging from merchandise to brand management, sponsorship, ecommerce, and film & television.  And we expanded our partner portfolio into emerging growth areas such as health and fitness, Web3 and social video. Our success in all these efforts showed in our financial performance -- revenues increased by 17% on a constant currency basis, Adjusted EBITDA margin expanded and Free cash flow improved significantly. Going forward, we see the industry continuing to grow and -- with our unique experience, our deep understanding of the business and the vast artist relationships and global creative networks -- we expect to further strengthen our position as the industry leader as we continue to break new artists and build on our world-class catalogue."

"We are generating robust free cash flow even as we continue to opportunistically and selectively invest in artists and catalogues that will be additive to the long-term health of our business", said EVP/CFO/Pres. Of Operations BOYD MUIR. "Our core business is well positioned for a strong 2022, which aligns with the plan we have set to achieve our previously announced mid-term targets."

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