# ‘Supercharged’ royalties, Downtown’s margins, and more cost cuts: What I learned from UMG’s Q3 earnings call

- URL: https://talkfuse.com/story/supercharged-royalties-downtowns-margins-and-more-cost-cuts-what-i-learned-from-umgs-q3-earnings-call/
- Published: 2026-11-03T21:54:30+00:00
- Updated: 2026-11-04T00:55:56+00:00
- Original publisher: Music Business Worldwide
- Original article: https://www.musicbusinessworldwide.com/supercharged-royalties-downtowns-margins-and-more-cost-cuts-what-i-learned-from-umgs-q3-earnings-call/
- Topics: Business, Companies, Entertainment, Markets, Music

## Key points

- UMG’s third-quarter revenue rose 11.7% to €3.394 billion.
- Subscription growth beat analysts’ expectations, excluding Downtown.
- UMG wants streaming royalties to reflect content’s value more closely.

## Summary

Universal Music Group reported higher revenue and profit in the third quarter, with subscription income growing faster than analysts expected. Its shares rose as much as 15% after the results, signalling improved investor confidence, although analysts said further strong quarters may be needed.

Revenue for the three months to the end of September rose 11.7% year on year at constant currency to €3.394 billion, while adjusted EBITDA increased 9% to €729 million. Excluding Downtown, subscription revenue grew 9.5%, compared with analysts’ 8.2% forecast. Chief executive Lucian Grainge backed changing streaming payment agreements so royalties better reflect the value of different content, including human-made music; Downtown added €195 million in revenue and €13 million in adjusted EBITDA, a 6.7% margin.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.