Universal Music Group N.V. Reports Financial Results for theSecond Quarter and Half Year Ended June 30, 2024
Q2 2024 Results Highlights1
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Revenue of €2,932 million increased 8.7% year-over-year, or 9.6% in constant currency, driven by growthacross all segments
Recorded Music revenue grew 5.8% year-over-year, or 6.8% in constant currency, while Music Publishinggrew 10.1% year-over-year, or 10.4% in constant currency and Merchandising grew 44.6% year-over-year, or
43.7% in constant currency
Recorded Music subscription revenue grew 6.5% year-over-year, or 6.9% in constant currency andstreaming revenue decreased 4.2% year-over-year, or 3.9% in constant currency, while physical revenue
grew 9.5% year-over-year, or 14.4% in constant currency and license and other revenue grew 18.0% yearover-year on both a reported and constant currency basis
Adjusted EBITDA of €649 million increased 10.0% year-over-year, or 11.3% in constant currency, andAdjusted EBITDA margin expanded 0.2 percentage points to 22.1%
Recorded Music top sellers included Taylor Swift, Billie Eilish, SEVENTEEN, Morgan Wallen and Ae! group

H1 2024 Results Highlights1
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Revenue of €5,526 million increased 7.3% year-over-year, or 8.8% in constant currency, driven by growthacross all segments
Recorded Music revenue grew 4.7% year-over-year, or 6.3% in constant currency, while Music Publishinggrew 13.4% year-over-year, or 14.3% in constant currency and Merchandising grew 29.2% year-over-year, or
29.7% in constant currency
Recorded Music subscription revenue grew 8.5% year-over-year, or 9.6% in constant currency andstreaming revenue grew 1.8% year-over-year, or 2.5% in constant currency, while physical revenue declined
4.2% year-over-year, but grew 0.3% in constant currency and license and other revenue grew 9.3% yearover-year, or 10.2% in constant currency
Adjusted EBITDA of €1,240 million increased 11.5% year-over-year, or 13.4% in constant currency, andAdjusted EBITDA margin expanded 0.8 percentage points to 22.4%
EPS of €0.50 per share compared to €0.34 in the first half of 2023 and Adjusted EPS of €0.44 per sharecompared to €0.42 in the first half of 2023
Interim dividend of €439 million, or €0.24 per share

Hilversum, The Netherlands, July 24, 2024 -- Universal Music Group N.V. (“UMG” or “the Company”) today
announced its financial results for the second quarter and half year ended June 30, 2024.
UMG´s Chairman and CEO Sir Lucian Grainge said, “Our continued strong revenue growth this quarterdemonstrates that we are, by design, a multifaceted music entertainment company that places our artists
at the center of everything we do. Our unique structure, which is both innovative and constantly evolving,
enables us to support our recording artists and songwriters with an ever-expanding array of revenue sources,
reinforced by new products and the exciting next phase of development of streaming services.”
1This press release includes certain alternative performance indicators which are not defined in the International Financial ReportingStandards (“IFRS”) issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative
performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Interim Financial Review and Unaudited
Condensed Consolidated Interim Financial Statements which is available on our website at investors.universalmusic.com/reports.

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“Our varied revenue streams, across both emerging and established businesses, allowed us to once again
achieve high-single digit revenue growth and double-digit Adjusted EBITDA growth this quarter” said Boyd Muir,
UMG's EVP, CFO and President of Operations. “We continue to invest into the growth we see ahead of us as we
execute against our long-term strategic plan.”

UMG Results
Three Months Ended June 30,(in millions of euros)

Revenue
EBITDA

2024

2023(unaudited)(unaudited)

2,932

580

2,697

const.

8.7%

590

10.0%

11.3%

Adjusted EBITDA margin

22.1%

21.9%

1.1pp
0.2pp

Net profit attributable to equity holders of the parent
Adjusted net profit

9.6%

17.4%

18.7%

Operating profit

YoY

14.9%

19.8%
649

%

505

EBITDA margin

Adjusted EBITDA%

Net cash provided by operating activities before income tax paid

Six Months Ended June 30,
2024

2023

(unaudited)(unaudited)

5,526

5,148

1,069

13.4%

591

27.9%

32.4%

765

5.8%

914

625

4.4pp
0.8pp

46.2%

1,825

1,817

EPS - diluted

0.49

0.34

(13)

0.50

0.34

0.44

0.42

0.44

0.42
As at

(in millions of euros)

Net Debt

48.6%

703 (38.0%)436

Weighted average number of shares outstanding

Adjusted EPS - diluted

8.8%

11.5%

(460)

Adjusted EPS - basic

7.3%

1,112

21.6%

Free cash flow
EPS - basic

const.

43.5%

22.4%

809

YoY

39.4%

14.9%

756

%

767

19.3%
1,240

%

%

June 30, 2024

December 31, 2023

(unaudited)(audited)(2,612)(1,689)

YoY

54.6%

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted forconstant currency. Constant currency is calculated by taking current year results and comparing against prioryear results restated at current year rates.
Q2 2024 Results
Revenue for the second quarter of 2024 was €2,932 million, an increase of 8.7% year-over-year, or 9.6% in
constant currency, driven by growth in the Recorded Music, Music Publishing and Merchandising and Other
segments, as discussed further below.
EBITDA for the quarter improved 14.9% year-over-year, or 17.4% in constant currency, to €580 million. EBITDA
margin was 19.8%, compared to 18.7% in the second quarter of 2023. EBITDA and EBITDA margin were impacted
by non-cash share-based compensation expenses of €69 million during the second quarter of 2024, comparedto €85 million during the second quarter of 2023. Excluding non-cash share-based compensation expenses,
Adjusted EBITDA for the quarter was €649 million, up 10.0% year-over-year, or 11.3% in constant currency, andAdjusted EBITDA margin improved to 22.1%, compared to 21.9% in the second quarter of 2023, as a result of
revenue growth and cost savings from the previously announced strategic organizational redesign, partially
offset by the unfavourable impact of revenue mix resulting from a greater proportion of merchandising andphysical sales.
H1 2024 Results
In the half year ended June 30, 2024 ("H1 2024"), UMG's revenue increased to €5,526 million, up by 7.3%, or 8.8%
in constant currency, compared to the half year ended June 30, 2023 (“H1 2023"). This increase was driven by
improvements across all segments, as discussed further below.
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Cost of revenues, consisting of artist and product costs, increased by €302 million to €3,113 million in H1 2024,
reflecting higher revenue. Cost of revenue as a percentage of revenue increased to 56.3% in H1 2024 from 54.6%
in H1 2023 primarily driven by a greater proportion of Music Publishing and Merchandising and Other revenues,
which have a higher cost of revenues compared to Recorded Music, and in particular by higher product costs.
Artist costs increased by €199 million to €2,584 million in H1 2024 from €2,385 million in H1 2023 driven by
the increase in sales. As a percentage of revenues, artists costs increased to 46.8% in H1 2024 from 46.3%
in H1 2023 on higher relative costs from both Music Publishing and Merchandising and Other. Product costs
increased by €103 million to €529 million in H1 2024 from €426 million in H1 2023 reflecting the growth inrevenues. Product costs as a percentage of revenues increased to 9.6% from 8.3% driven primarily by the higher
proportion of merchandising sales.
EBITDA of €1,069 million improved 39.4% year-over-year, or 43.5% in constant currency, and EBITDA margin
was 19.3% compared to 14.9% in H1 2023. EBITDA and EBITDA margin were impacted by non-cash share-based
compensation expenses of €171 million during H1 2024 and €345 million during H1 2023. Excluding theseamounts, Adjusted EBITDA was €1,240 million, up 11.5% year-over-year, or 13.4% in constant currency, andAdjusted EBITDA margin expanded 0.8pp year-over-year to 22.4% driven by revenue growth and cost savings
from the previously announced strategic organizational redesign, partially offset by the higher cost of revenues
discussed above.
Operating profit improved 27.9% year-over-year, or 32.4% in constant currency, to €756 million due to theimproved revenues and lower non-cash share-based compensation expenses in H1 2024 compared to H1 2023
as discussed above. This was partially offset by the increase in restructuring charges that were €113 million in
H1 2024 compared to €15 million in H1 2023 as a result of the strategic organizational redesign.
Net profit attributable to equity holders of the parent in H1 2024 amounted to €914 million compared to€625 million in H1 2023, resulting in EPS of €0.50 in H1 2024, compared to €0.34 in H1 2023. The improvementin net profit attributable to equity holders of the parent was due to the improvement in operating profit andthe variance in revaluation of investments in listed and other companies (including Spotify and Tencent MusicEntertainment, among others) that was a net income in H1 2024 of €566 million compared to a net income in
H1 2023 of €313 million. Adjusted net profit, which adjusts for the revaluation of investments, non-cash sharebased compensation expense, amortization of catalogues, restructuring charges and other items, amounted to€809 million in H1 2024, compared to €765 million in H1 2023, resulting in Adjusted EPS of €0.44 in H1 2024,
compared to €0.42 in H1 2023.
Net cash provided by operating activities before income tax paid decreased 38.0% to €436 million compared to€703 million in H1 2023 due predominately to the increase in royalty advance payments, net of recoupments,
which was €315 million in H1 2024 compared to €95 million in H1 2023, due to the timing of certain major artist
deal renewals and extensions, partially offset by the increase in recoupment.
Cash paid for catalogue acquisitions was €96 million in H1 2024 compared to €89 million in H1 2023 andincluded the completion of a catalogue acquisition for which the cash had been previously paid into escrow.
In addition, the Company continued to strategically invest in the long-term growth of the business, with thepreviously disclosed investments in Chord Music Partners, NTWRK and Mavin Global during H1 2024. As a result,Free cash flow decreased to a €460 million outflow in H1 2024 compared to a €13 million outflow in H1 2023.
In line with UMG's dividend policy to pay a dividend of at least 50% of adjusted net profit, UMG's Board of
Directors declared an interim dividend for H1 2024 of €439 million, or €0.24 per share. The ex-dividend date
will be on October 2, 2024, the record date will be on October 3, 2024 and the payment date will be on October25, 2024.
Net debt at the end of H1 2024 was €2,612 million compared to €1,689 million at the end of 2023. The increasein net debt was primarily used to fund investing activities and dividends partially offset by cash generated byoperating activities.

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Recorded Music
Three Months Ended June 30,(in millions of euros)

Subscriptions
and streamingof which streamingof which subscription
Downloads andother digital
PhysicalLicense and other
RecordedMusic revenues
EBITDA%%

YoY

const.

1,426

3.8%

4.1%

358

(4.2%)(3.9%)

61

2024

2023

(unaudited)(unaudited)

1,480
343

1,137

1,068

357

326

2,200

2,080

48

315

267

6.5%

Six Months Ended June 30,

%

%

YoY

const.

2,755

6.9%

7.9%

673

1.8%

2.5%
(16.8%)

2024

2023

(unaudited)(unaudited)

2,945
685

(21.3%)

6.9%(18.6%)

2,260

2,082
116

(19.0%)

9.5%

14.4%

612

639

(4.2%)

5.8%

6.8%

4,190

18.0%

18.0%

94

539

959

0.3%

4,003

4.7%

10.2%

698

37.4%

41.4%

969

9.9%

11.9%

22.9%

17.4%

Adjusted EBITDA margin

25.4%

24.2%

1,065

9.6%

9.3%

493

EBITDA margin

Adjusted EBITDA

8.5%

5.5pp
1.2pp

6.3%

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted forconstant currency.
Q2 2024
Recorded Music revenue for the second quarter of 2024 was €2,200 million, up 5.8% compared to the second
quarter of 2023, or 6.8% in constant currency. Subscription revenue grew 6.5% year-over-year, or 6.9% in
constant currency, driven primarily by the growth in global subscribers as well as the impact of certain priceincreases. Streaming revenue declined 4.2% year-over-year, or 3.9% in constant currency, due to a decelerationin growth at key advertising-based platform partners as well as shortfalls on certain platforms related to thetiming of deal renewals. Physical revenue increased by 9.5% year-over-year, or 14.4% in constant currency,
due to a favorable release schedule driving vinyl sales in the U.S. and Europe, which more than offset adifficult comparison against last year's strong CD sales in Japan. Downloads and other digital revenue declined
21.3% year-over-year, or 18.6% in constant currency, as download sales continued their industry-wide decline.
License and other revenue improved 18.0% year-over-year on both a reported and constant currency basis,
as a result of improvements in synchronization income, greater live and audiovisual production income andincreased direct-to-consumer related activities. Top sellers for the quarter included releases from Taylor Swift,
Billie Eilish, SEVENTEEN, Morgan Wallen and Ae! group, while top sellers in the prior-year quarter included King& Prince, Morgan Wallen, SEVENTEEN, Taylor Swift and Stray Kids.
H1 2024
Recorded Music revenue in H1 2024 was €4,190 million, up 4.7% compared to H1 2023, or 6.3% inconstant currency.
Subscription revenue grew 8.5% year-over-year, or 9.6% in constant currency. Streaming revenue grew 1.8%
year-over-year, or 2.5% in constant currency. Physical revenue declined 4.2% year-over-year, but grew 0.3%
in constant currency. Downloads and other digital revenue decreased by 19.0% year-over-year, or 16.8% inconstant currency. License and other revenue improved 9.3% year-over-year, or 10.2% in constant currency.
Top sellers for H1 2024 included Taylor Swift, Morgan Wallen, Noah Kahan, Billie Eilish and Ariana Grande,
while top sellers for H1 2023 included King & Prince, Morgan Wallen, Taylor Swift, Metro Boomin and TOMORROWX TOGETHER.
Recorded Music EBITDA of €959 million improved 37.4% year-over-year, or 41.4% in constant currency, while
Recorded Music EBITDA margin increased 5.5pp to 22.9% from 17.4% in H1 2023. Recorded Music EBITDA andEBITDA margin were impacted by non-cash share-based compensation expenses of €106 million in H1 2024 and€271 million in H1 2023. Excluding non-cash share-based compensation, Recorded Music Adjusted EBITDA in H1
2024 was €1,065 million, up 9.9% year-over-year, or 11.9% in constant currency, and Recorded Music Adjusted
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EBITDA margin improved 1.2pp to 25.4% from 24.2% in H1 2023 driven by the growth in revenue, operating
leverage and cost savings from the strategic organizational redesign.

Music PublishingThree Months Ended June 30,(in millions of euros)

Performance

Synchronisation

2024

2023

(unaudited)(unaudited)

61

60

100

97

Digital

311

264

Other

13

14

MechanicalMusic
Publishing revenues
EBITDA

26

511

%

%

YoY

const.

3.1%
1.7%

17.8%

4.2%
1.7%

17.4%

29

(10.3%)(10.3%)

464

10.1%

10.4%

(7.1%)

0.0%

Six Months Ended June 30,

%

%

YoY

const.

187

14.4%

15.7%

495

20.2%

20.7%

26

(7.7%)

0.0%

2024

2023

(unaudited)(unaudited)

124

129

214
595
51
24

1,008
229

52

(1.9%)

13.4%

14.3%

186

23.1%

23.8%

11.6%

12.1%

22.7%

20.9%

Adjusted EBITDA margin

23.9%

24.3%

241

(1.9%)(3.1%)

889

EBITDA margin

Adjusted EBITDA(3.9%)

216

1.8pp(0.4pp)Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted forconstant currency.
Q2 2024
Music Publishing revenue in the second quarter of 2024 was €511 million, up 10.1% year-over-year, or 10.4%
in constant currency. Digital revenue improved 17.8% year-over-year, or 17.4% in constant currency due tothe growth in streaming and subscription revenue and the timing of deals. Performance revenue grew 3.1%
year-over-year, or 4.2% in constant currency and Synchronization revenue improved 1.7% year-over-year on
both a reported and constant currency basis. Mechanical revenue declined 10.3% both year-over-year and inconstant currency as a result of the industry's continued shift towards digital formats.
H1 2024
Music Publishing revenue amounted to €1,008 million in H1 2024, up 13.4% year-over-year, or 14.3% in constantcurrency, as a result of the continued organic growth in streaming and subscription revenue and improvementin performance revenue.
Music Publishing EBITDA of €229 million improved 23.1% year-over-year, or 23.8% in constant currency, while
Music Publishing EBITDA margin increased 1.8pp to 22.7% from 20.9% in H1 2023. Music Publishing EBITDA andEBITDA margin were impacted by non-cash share-based compensation expenses of €12 million in H1 2024 and€30 million in H1 2023. Excluding non-cash share-based compensation, Music Publishing Adjusted EBITDA was€241 million in H1 2024, up 11.6% year-over-year, or 12.1% in constant currency. Music Publishing Adjusted
EBITDA margin declined 0.4pp to 23.9% from 24.3% in H1 2023 driven by revenue and repertoire mix.

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Merchandising and Other
Three Months Ended June 30,(in millions of euros)

Merchandising andother revenues
EBITDA

2024

2023(unaudited)227(unaudited)

157

%

%

YoY

const.

44.6%

43.7%

Six Months Ended June 30,
2024

2023

(unaudited)(unaudited)

18

17

341

%

%

YoY

const.

264 29.2%

29.7%

5.9%

5.9%

EBITDA margin

5.3%

6.4% (1.1pp)

Adjusted EBITDA margin

5.3%

7.6% (2.3pp)

Adjusted EBITDA

1820 (10.0%) (10.0%)

Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted forconstant currency.
Q2 2024
Merchandising and Other revenue in the second quarter of 2024 was €227 million, up 44.6% year-over-year,or 43.7% in constant currency, driven by growth in direct-to-consumer sales and higher touring merchandise
sales as a result of strong touring activity in the period.
H1 2024
Merchandising and Other revenue grew to €341 million in H1 2024, up 29.2% year-over-year, or 29.7% in
constant currency, driven by the growth in touring merchandise sales and direct-to-consumer sales.
Merchandising and Other EBITDA of €18 million grew 5.9%, year-over-year on both a reported and constantcurrency basis, while Merchandising and Other EBITDA margin declined 1.1pp to 5.3% from 6.4% in H1 2024.
Merchandising and Other EBITDA and EBITDA margin were impacted by non-cash share-based compensation
expenses of €3 million H1 2023. Merchandising and Other Adjusted EBITDA in H1 2024 was €18 million, down
10.0% year-over-year on both a reported and constant currency basis and Merchandising and Other Adjusted
EBITDA margin decreased by 2.3pp to 5.3% as a result of higher relative artist costs due to artist mix.

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Conference Call Details
The Company will host a conference call to discuss these results on July 24, 2024 at 6:15PM CEST. A link to thelive audio webcast will be available on investors.universalmusic.com and a link to the replay will be available
after the call.
While listeners may use the webcast, a dial-in telephone number is required for investors and analysts
to ask questions. Investors and analysts interested in asking questions can pre-register for a dial-in line
at investors.universalmusic.com under the "Financial Reports" tab.

Cautionary NoticeThis press release is published by Universal Music Group N.V. and contains inside information within themeaning of article 7 (1) of Regulation (EU) No 596/2014 (Market Abuse Regulation).

Forward-looking statements
This press release may contain statements that constitute forward-looking statements with respect to UMG’sfinancial condition, results of operations, business, strategy and plans. Such forward-looking statements may
be identified by the use of words such as ‘profit forecast’, ‘expect’, ‘estimate’, ‘project’, ‘anticipate’, ‘should’,‘intend’, ‘plan’, ‘probability’, ‘risk’, ‘target’, ‘goal’, ‘objective’, ‘will’, ‘endeavour’, ‘optimistic’, ‘prospects’ andsimilar expressions or variations on such expressions. Although UMG believes that such forward-looking
statements are based on reasonable assumptions, they are not guarantees of future performance. Actual
results may differ materially from such forward-looking statements as a result of a number of risks anduncertainties, many of which are related to factors that are outside UMG’s control, including, but not limited
to, UMG’s inability to compete successfully and to identify, attract, sign and retain successful recording artists
and songwriters, failure of streaming and subscription adoption or revenue to grow or to grow less rapidly
than anticipated, UMG’s reliance on digital service providers, UMG’s inability to execute its business strategy,
the global nature of UMG’s operations, UMG’s inability to protect its intellectual property and against piracy,
UMG’s inability to attract and retain key personnel, changes in laws and regulations and the other risks thatare described in our 2023 Annual Report. Accordingly, UMG cautions readers against placing undue relianceon such forward-looking statements. Such forward-looking statements are made as of the date of this press
release. UMG disclaims any intention or obligation to provide, update or revise any such forward-looking
statements, whether as a result of new information, future events or otherwise.

Alternative Performance Indicators
This press release includes certain alternative performance indicators which are not defined in IFRS issued
by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative
performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Interim Financial
Review and Unaudited Condensed Consolidated Interim Financial Statements which is available on our website
at investors.universalmusic.com/reports.

About Universal Music GroupAt Universal Music Group (EURONEXT: UMG), we exist to shape culture through the power of artistry. UMG is
the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music,
music publishing, merchandising and audiovisual content. Featuring the most comprehensive catalogue ofrecordings and songs across every musical genre, UMG identifies and develops artists and produces anddistributes the most critically acclaimed and commercially successful music in the world. Committed toartistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and businessmodels in order to broaden artistic and commercial opportunities for our artists and create new experiences forfans. For more information on Universal Music Group N.V. visit www.universalmusic.com.

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Contacts
Media
James Murtagh-Hopkins - communicationsnl@umusic.com
Investors
Erika Begun - investorrelations@umusic.com

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