Universal Music Group Reports Nearly 6% Q1 Revenue Growth After a New Deal With TikTok

By Jace Dela Cruz

May 03, 2024 03:15 AM EDT

The generated revenue of Universal Music Group rose 5.8% during the first quarter of 2024, reaching 2.59 billion euros ($2.8 billion), the company announced Thursday. This was driven by paid music subscriptions and robust performance in its music publishing division. 

A view of the Universal Music Group (UMG) headquarters is seen on February 9, 2021 in Santa Monica, California.
(Photo : VALERIE MACON/AFP via Getty Images)

Q1 2024 Profits of Universal Music Group

According to Billboard, Universal Music Group's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) significantly improved, increasing by 13.2% to 591 million euros ($640 million) compared to last year.

That resulted in an adjusted EBITDA margin of 22.8%. According to Universal Music Group CFO Boyd Muir, the margin improvement was attributed to revenue growth and changes in product mix, namely less physical sales.

However, during Thursday's earnings call, Muir cautioned against reading results from a single quarter and asked investors to look at longer-period trends.

READ NEXT: Taylor Swift, Drake, and Other UMG Artists Return to TikTok Following New Agreement on Licensing and AI

Universal Music Group's New Licensing Agreement With TikTok

The quarterly earnings report was released a day after the Universal Music Group announced a new licensing agreement with TikTok. Analysts inquired about the deal's terms and potential impact on the company's financial statements.

However, executives refrained from disclosing specific details but noted that the agreement provided fair value compared to other short-form video platforms.

READ MORE: SAG-AFTRA, UMG, Other Major Labels To Protect Music Industry From AI-What To Know About New Anti-AI Deal

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