“Strong growth across all segments” — UMG releases earnings and predicts layoffs

What would you say if we told you that Taylor Swift was one of UMG’s top sellers? Well, believe it. Also The Rolling Stones, in a lovely cross-generational fiscal hook.

Universal Music Group, the world’s largest music company, released financial information for Q4, and full-year 2023. UMG is a Dutch-American firm operating under Dutch law and traded on the Amsterdam Stock Exchange (AMS).

While bragging about Taylor and the Stones, the main info is financial, where UMG reports Q4 revenue of 3.2 million euros, an increase of nine percent year-over-year. (The dollar amount is about $3.4 Million.) The stock is currently trading at an all-time high.


2023 was another exceptional year for UMG: creatively; financially; and strategically.” –UMG


Looking at the full-year (2023) numbers, we see revenue of 11,108 euros, representing a 7.4% year-over-year gain.

UMG breaks out subscription revenue and streaming revenue, representing the two essential modes of online delivery. For both Q4 and full-year, subscription revenue grew by about nine percent, while streaming revenue remained steady ((FY) or declined a bit (Q4).

Boyd Muir, EVP, CFO and President of Operations for UMG, said, “We continued our strong performance in 2023, with robust top- and bottom-line growth driven by both our artists’ and songwriters’ exceptional performance, as well as progress across our strategic initiatives.”

UMG employees might gear up for layoffs, as UMG is planning a “strategic organizational redesign” which will involve a combination of “headcount reduction and other operational efficiencies.” The company expects to achieve savings of 125-million Euros in 2025, and 75-million this year.

There is much more detail in the public announcement, which is HERE.

Brad Hill