GLOBAL / ASIA, 30 October 2025 — Universal Music Group achieved a quarter of healthy growth and strategic positioning in its third quarter ended 30 September 2025. Revenue rose to €3.02 billion, up 5.3 percent year-on-year, or 10.2 percent in constant currency. Adjusted EBITDA increased by 6.9 percent to €664 million, with the adjusted EBITDA margin expanding to 22.0 percent from 21.6 percent a year earlier.
UMG’s three major business segments, Recorded Music, Music Publishing and Merchandising & Other, each contributed to the growth. In Recorded Music, physical-sales volumes performed strongly, with growth of around 18.4 percent year-on-year (23.1 percent in constant currency) driven in part by major releases and particularly strong performance in Japan. During the quarter the company also disclosed that streaming revenue declined by 4.8 percent (flat in constant currency), a notable indicator that structural challenges persist in monetising streaming.
A key strategic highlight from the quarter was UMG’s announcement of a new comprehensive agreement with YouTube, covering both recorded-music and publishing rights across the platform’s music assets. UMG Chairman & CEO Sir Lucian Grainge described the deal as the company’s third major “Streaming 2.0” agreement (following prior deals with Spotify and Amazon) and emphasised that the contract includes specific “guardrails” on generative artificial intelligence (AI) content to protect artists and songwriters.
The company also reaffirmed its belief that AI represents a transformational opportunity, comparing its potential impact on the music-business model to the streaming revolution of 15 years ago. Partnerships with companies such as Stability AI to develop next-generation music-creation tools, and agreements to monetise short-form video formats more effectively, were flagged as key enablers of future revenue streams.
UMG’s regional commercials also garnered attention. For example, the company highlighted that Japanese artists are breaking unique ground, with groups like BABYMETAL and artists such as Fujii Kaze achieving top-10 status in the U.S. and Europe respectively, evidence of the company’s regional depth and global export capability.
Looking ahead, UMG continues to emphasise its roadmap built around three core pillars: artist-and-songwriter development, global expansion of the publishing and recorded-music catalog, and monetisation of emerging formats (AI, short-form video, metaverse-adjacent experiences). While streaming growth remains subdued and the company acknowledged that monetisation of lower-yield platforms is still an area under pressure, the new YouTube deal and the physical-sales rebound suggest that the business is adapting.
