Universal Music Logs Strong Subscriptions, Streaming Revenue Growth — Update

By Mauro Orru

Universal Music Group posted robust revenue growth from subscriptions and streaming for the first quarter and said it would channel part of its Spotify stake into a larger buyback program.

The music company behind Lady Gaga and Taylor Swift said it would increase the size of its 500 million-euro share buyback to 1 billion euros and monetize half of its equity stake in Spotify to buy back shares.

The world's largest music company said its share price was undervalued relative to its business performance and prospects, weeks after its board started reviewing a takeover proposal from Bill Ackman's Pershing Square Capital that valued Universal at more than $60 billion.

Revenue for the three months to the end of March grew 8.1% on year at constant currency to 2.90 billion euros, equivalent to $3.40 billion. Analysts had forecast 2.94 billion euros in revenue, according to Visible Alpha.

Subscriptions and streaming remain a key focus for investors since they account for the lion's share of Universal Music's revenue even though growth in these services cooled in recent years following a surge during the pandemic.

Revenue from subscriptions and streaming grew 10.9% at constant currency to 1.64 billion euros, above analysts' forecast of 9.4% growth. That marked an acceleration from 8.1% growth that the company recorded for the fourth quarter.

Universal said revenue from subscriptions alone climbed 12.5% at constant currency to 1.30 billion euros, citing price increases. Streaming revenue increased 5% at constant currency to 339 million euros. Analysts had forecast 10.7% growth in subscriptions and 5.4% growth in streaming, according to Visible Alpha.

Universal's physical revenue--which includes vinyl sales--jumped 12.7% at constant currency to 310 million euros, with particular strength in the U.S. and Japan. Top sellers for the quarter included BTS, Olivia Dean, Taylor Swift, the KPop Demon Hunters soundtrack and Morgan Wallen.

Adjusted earnings before interest, taxes, depreciation and amortization--Universal's preferred measure of profitability--slipped to 636 million euros from 661 million euros a year earlier, generating a 21.9% adjusted margin. Analysts had forecast adjusted Ebitda of 667 million euros, according to Visible Alpha.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

April 29, 2026 12:54 ET (16:54 GMT)