Universal Music posts $3.8 billion Q2 revenue as touring earnings fall

Universal Music Group announced second-quarter earnings of €3.294 billion, a 10.5% increase compared with the same period last year, driven by a 13% rise in recorded-music revenue and an 8% jump in publishing income. Excluding the recent acquisition of Downtown Music, the core business generated just over €3 billion. Merchandise sales declined 13% to €167 million, a drop the company attributes to the timing of tours on its roster and reduced direct-to-consumer revenue.

Chairman and CEO Lucian Grainge said the firm is executing its strategic plan while leveraging new technologies. During the earnings call, chief digital officer Michael Nash detailed a new Indian streaming model that will keep fresh releases behind a paid subscription for three days before they appear on the free tier, a strategy previously used in China. The move reflects the industry’s push to convert more listeners to paid subscriptions without indicating plans to apply it in larger markets such as the United States or United Kingdom.