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Universal Music Posts $1.8B in Quarterly Revenue Bulletin YOUR DAILY ENTERTAINMENT NEWS UPDATE JULY 28, 2021 Page 1 of 22 INSIDE Universal Music Posts • Spotify Reports $1.8B in Quarterly Revenue 165 Million Paid Users as Q2 Revenue Ahead of Public Listing Climbs 23% BY ED CHRISTMAN • YouTube Hits $7B in Ad Revenue, Tops Wall Street Ahead of its upcoming public listing this fall, Uni- quarter to 210 million euros ($253.3 million) from 180 Expectations versal Music Group’s revenue skyrocketed to 2.022 million euros ($195.3 million) in 2020’s Q2. billion euros ($2.438 billion) during the second Music publishing revenue didn’t match the year- • Apple Services quarter, up 19.6% from 1.69 billion euros ($1.833 bil- earlier period with the company garnering 293 million Revenue Hits $17.5B lion) in Q2 of 2020. euros versus 353.4 million euros in the second quarter • Why Music UMG’s recorded music division enjoyed even larger of 2020 — but that quarter’s revenue was buttressed Marketplace increases, growing 23.5% to 1.654 billion euros ($1.994 by a one-time item, according to the company. Mean- BeatStars Is Getting billion) with streaming rising 23.8% to 1.122 billion while, merchandising and other income streams grew Into Publishing euros ($1.35 billion) in the second quarter this year 54.9% to 79 million euros as compared with 51 million • Alphabet, Apple versus 906 million euros ($983 million) in the second euros in the year-earlier corresponding period. and Microsoft Post quarter of 2020. The company cited releases from Jus- In advance of its Sept. 21 listing on Euronext Am- Combined Profits of tin Bieber and Olivia Rodrigo, and a best-of compila- sterdam, the company said that it will hold a Capital More Than $50B tion from BTS as well as continued sales of music Markets Day by video conference on Aug. 25. • ZZ Top’s Dusty from The Weeknd, Pop Smoke and Ariana Grande. For the half year period ending June 30, 2021, Hill Dead: Longtime Moreover, at mid-year UMG claimed eight of the UMG’s overall revenue was up 10.8% to 3.8 billion Bassist Dies at 72 top 10 titles in MRC Data’s year-to-date album con- euros ($4.6 billion) in the first six months of 2021, • Cindy Agi Joins sumption chart, the company pointed out. from 3.5 billion euros ($3.8 billion) earned in the same Live Nation From Physical sales also enjoyed a big gain in the second period last year. On a constant currency and perimeter WME quarter of this year, growing to 250 million euros basis, the company said revenues increased 17.3%. ($301.5 million) from 152 million euros in the second Net income, meanwhile, fell 38.5% to 453 million • BILLBOARD 200 quarter of 2020, a 64.5% increase, while licensing euros ($548.6 million), despite improved performance CLICK and other income streams grew 16.7% in the second (continued) TOTAL IMMERSION ESSENTIAL ANALYSIS of the latest business topics and trends formulated to give industry players the competitive advantage in a rapidly changing market. EXCLUSIVE QUARTERLY REPORTS that deliver in-depth, holistic reporting; case studies; and custom data designed to serve the industry. A DEEP DIVE LIBRARY stocked with intelligence on fan data, SUBSCRIBE TO BILLBOARD PRO FOR song catalog sales, TV synchs, Africa’s burgeoning music ACCESS TO NEW REPORTS business and the gaming industry’s embrace of artists. AND THE ARCHIVE 2021 R&B/HIP HOP POWER ISSUE R&B/Hip-Hop dominates every other genre claiming a quarter of all music consumption. On August 7th, Billboard will publish its 5th annual R&B/Hip-Hop Power Players list showcasing the producers, creatives, executives and publishers who have made R&B/Hip-Hop the hottest genre on earth. Advertise and congratulate the people who are driving this industry and reach an influential audience of decision-makers in music and pop culture. ON SALE : 8/7 | AD CLOSE: 7/28 | MATER IAL S DUE: 7/29 CONTACT Sp ue Joe Maimone 201.301.5933 | [email protected] LE Lee Ann Photoglo 615.376.7931 | [email protected] 21 Cynthia Mellow 615.352,0265 | [email protected] Marcia Olival 786.586.4901 | [email protected] Ryan O’Donnell +447843437176 | [email protected] Editorial content subject to change Page 3 of 22 IN BRIEF in key financial metrics. That’s down from euros ($3.8 billion) from 2.77 billion euros prise 12.5% of revenue, down from 13.4% in 736 million euros ($803.7 million) in the ($3.0 billion) in H1 2020. H1 2020. same half year period last year. Music publishing fell 1.6% to 564 million Recorded music revenue by geography: If UMG stock were trading, that would euros ($683 million) from 573 million euros North America: 49.5% of total, up 11.3% be the equivalent of 0.25 euros per share, ($626 million) in H1 2020. to 1.55 billion euros ($1.88 billion), from $1.4 down from 0.41 euros per share in the first Merch and other income streams grew billion ($1.5 billion) in H1 2020. half of 2020. 14% to 138 million euros ($167 million) from Europe: 29.3%, up 9.8% to 920 million That dip comes with asterisks, how- 121 million euros ($132 million) in H1 2020. euros ($1.1 billion), from 838 million euros ever: The company absorbed a charge of Recorded music revenue for the first half ($915 million) in H1 2020. 170 million euros ($201 million) due to a of 2021: Asia: 13.6%, up 12% to $428 million euros revaluation of UMG’s holdings in Spotify Streaming grew 17.4% to 2.13 billion euros ($518.3 million), from 382 million euros and Tencent — which itself was partially ($2.6 billion) from $1.8 billion euros ($1.98 ($417 million) in H1 2020. offset by a 100 million euros ($118 million) billion) in H1 2020. Latin America: 3.4%, up 12.6% to 107 mil- gain from selling the company’s interest Downloads fell 35.7% to 153 million euros lion euros ($129.6 million), from 95 million in Alamo Records. Also, in the first half of ($185.3 million) from 238 million euros euros ($103.7 million) in H1 2020. 2020, UMG’s earnings was buttressed by a ($259.9 million) in H1 2020. Rest of the world: 4.1%, up 113.3% to 128 449 million euros ($531 million) capital gain Physical grew 33% to 463 million euros million euros ($155 million), from 60 million on financial investments, versus only a 102 ($560.7 million) from 348 million euros euros ($65.5 million) in H1 2020. million ($121 million) euros capital gain in ($380 million) in H1 2020. (This story uses an exchange rate of 1 euro the first half of 2021. Licensing and other income streams grew to $1.206 for the second quarter of 2021 and But if earnings before interest, taxes, 5.45% to 391 million euros ($473.5 million) 1 euro to $1.211 for the first half of 2021. For depreciation and amortization are consid- from €371 million ($405.1 million) in H1 2020, the exchanges rates respectively were ered, UMG produced 822 million euros 2020. 1 euro to 1.085 and 1 euro to $1.092, respec- ($995.4 million) in the first half of 2021 — a Recorded music revenue by percentage of tively) 26.7% increase over the 649 million euros revenue: This story is developing. ($708.7 million) in EBITDA garnered in Overall digital comprises 72.8% of label the first half of 2020. That means EBITDA revenue, down from 74.1% in H1 2020. margin improved dramatically to 21.5% of Streaming comprises 67.8% of recorded revenue, versus the 18.8% of revenue the music revenue, up from 65.5% in H1 2020. company had in the year earlier correspond- Downloads comprise 4.9% of recorded ing period. music revenue, down from 8.6% in H1 2020. UMG operations revenue for the first half Physical comprises 14.8% of recorded of 2021: music revenue, up from 12.6% in H1 2020. Recorded music grew 13.2% to 3.14 billion Licensing and other income streams com- AUTHORITATIVE INTELLIGENCE. DELIVERED DIGITALLY. CLICK HERE FOR FREE DELIVERY DIGITAL NEWSLETTERS 2021 ERIKA RECORDS INC. 40TH ANNIVERSARY This year marks the 40th anniversary of Erika Records Inc. CONTACTS founded in 1981 by Erzsebet Liz Dunster, making the company the first ever woman owned vinyl record Joe Maimone 201.301.5933 | [email protected] pressing plant. Originally started as a heavy metal label Dunster scouted bands at legendary venues such as the Lee Ann Photoglo Troubadour and sold records out of the trunk of her Pinto. 615.376.7931 | [email protected] She had one goal in mind: save enough to open her own pressing plant for the sake of creative freedom. She Cynthia Mellow wanted to elevate vinyl records beyond the standard 615.352,0265 | [email protected] round record. Marcia Olival 786.586.4901 | [email protected] The company’s DIY approach and commitment to the evolution of vinyl has been key to the success of Erika Ryan O’Donnell Records over the past four decades. The company is a +447843437176 | [email protected] leader in both standard and custom vinyl manufacturing having made puzzle piece records, flower petal records, etch-picture disc combination records, and more. Today Erika Records operates out of a 36,000 square foot facility with over 40 running presses in Buena Park, California and is the only 100% lead free pressing plant.
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