UMG revenues increased by 9.4% year-on-year in Q1 to €1.809 billion.
The results follows the announcement by Vivendi of plans for an IPO in Amsterdam for Universal Music this year.
Recorded music revenues grew by 10.8% thanks to the growth in subscription and streaming revenues (up 19.6%) – and despite the receipt of a digital royalty claim in the first quarter of 2020.
Physical sales were up 14.8% compared to the first quarter of 2020. Recorded music best sellers for the first quarter of 2021 included new releases from King & Prince and Justin Bieber, as well as continued sales from The Weeknd, Ariana Grande and Pop Smoke.
On the Spotify global chart, UMG had the No.1 track for 12 out of 13 weeks in the first quarter of 2021 with Olivia Rodrigo’s Driver’s license and Justin Bieber’s Peaches. UMG also had all of the Top 3 songs on Spotify’s global chart for six consecutive weeks.
Music publishing revenues grew by 6.9% compared to the first quarter of 2020, driven by increased subscription and streaming revenues. Merchandising and other revenues were down 10%, as touring activity continued to be impacted by the pandemic and despite improved retail and D2C sales.
In February 2021, UMG announced the launch of Virgin Music Label & Artist Services.
Last month, Universal Music Group BV (UMG BV) reached an agreement regarding a five-year, €3 billion financing line with four leading banks. UMG's headquarters in Hilversum, Netherlands, previously located in Paris, now regroup the subsidiaries in the various countries in which UMG operates.
All financial results are at constant currency and perimeter.
Subscribers can click here to read Music Week’s Q1 analysis.