Half Year 2024 Universal Music Group NV Earnings Call Transcript
Key Points
- Revenue grew by 10% and adjusted EBITDA increased by 11% in the second quarter.
- UMGNF achieved its 12th consecutive quarter of high single-digit revenue growth and seventh consecutive quarter of double-digit adjusted EBITDA growth.
- Strong performance from artists like Taylor Swift, Billie Eilish, and Sabrina Carpenter contributed significantly to revenue.
- Diverse revenue streams, including physical sales, licensing, and direct-to-consumer sales, continue to grow.
- UMGNF is actively engaging with DSP partners for product innovation and exploring new revenue opportunities through AI and other technologies.
- Ad-supported streaming revenue declined by 4% in the quarter.
- Subscription revenue growth decelerated to 7%, impacted by slower subscriber growth at certain platforms.
- High noncash share-based compensation expenses, amounting to EUR69 million for the quarter.
- Increased net royalty advance payments, which negatively impacted cash flow.
- Merchandising adjusted EBITDA declined by 10% due to artist mix, despite a 44% increase in merchandising revenue.
Good evening. And welcome to Universal Music Group's second quarter and first half earnings call for the period ended June 30, 2024.
My name is Nadia. And I will be your conference operator today. Your speakers for today's call will be Sir Lucian Grainge, Chairman and CEO of Universal Music Group; and Boyd Muir, Executive Vice President, CFO, and President of Operations. They will be joined during Q&A by Michael Nash, Executive Vice President and Chief Digital Officer. (Operator Instructions) As a reminder, this call is being recorded.
Please also let me remind you that management's commentary and responses to questions on today's call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may vary in a material way. For a discussion of some of the factors that could cause actual results to differ from expected results, please see the Risk Factors section of UMG's 2023 annual report, which is available on the
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