Universal Music Group has announced its intention to repurchase EUR €500 million (USD $575m) worth of its own shares in what marks the company’s first-ever share buyback program.
The company said the program underscores “management and the Board’s confidence in UMG’s strategy and long-term growth.”
The shares will be purchased through a program executed by an independent broker, UMG said on Monday (March 30).
UMG’s CFO, Matt Ellis, said: “Since our transition to a public company, we have consistently delivered sustained growth, strong financial results and strategic leadership, establishing a robust foundation for long-term value creation.”
“We currently see a meaningful dislocation in UMG’s market valuation. Our strong balance sheet and cash generation gives us the flexibility to repurchase shares, while preserving ample capacity to invest in our growth strategy, and reconfirming our commitment to maintaining our credit ratings and our dividend policy.”
Matt Ellis, UMG
Ellis added: “We currently see a meaningful dislocation in UMG’s market valuation.
“Our strong balance sheet and cash generation gives us the flexibility to repurchase shares, while preserving ample capacity to invest in our growth strategy, and reconfirming our commitment to maintaining our credit ratings and our dividend policy.”
UMG has traded publicly on the Euronext Amsterdam exchange since September 2021.
UMG said its capital allocation strategy “prioritizes disciplined, strategic reinvestment, underpinned by a strong balance sheet and healthy cash generation.”
This approach, UMG added, “drives long-term value creation for artists, songwriters and shareholders, while maintaining the Company’s dividend policy, before considering additional capital returns, such as share buybacks.”
The company said that it intends to use the repurchased shares “to meet its obligations under the 2022 Universal Music Group Global Equity Plan, and subplans thereof (“the equity plan”), and/or to reduce the share capital of the Company”.
UMG noted that the maximum number of shares that can be used for purposes of the equity plan will remain unchanged.
The buyback program will be executed within the existing authorization of UMG’s Board of Directors to repurchase the company’s own shares, as granted at UMG’s Annual General Meeting of Shareholders held on May 14, 2025, and the authority to be granted at future AGMs.
UMG added that the program may be “suspended, modified, or discontinued at any time.”
The share buyback program will be conducted in accordance with Regulation (EU) No 596/2014, known as the Market Abuse Regulation, and Commission Delegated Regulation (EU) 2016/1052, including compliance with safe harbour provisions for such programs.
UMG said it will inform the market of the progress of the program through regular press releases and updates on its website.
Those results showed that UMG generated revenues of €3.605 billion ($4.19bn) across all of its divisions in Q4, up 10.6% YoYat constant currency, driven by strong growth in the Recorded Music segment. Adjusted EBITDA for Q4 came in at €810 million ($941.9m), representing a margin of 22.5%.
Within recorded music, subscription streaming revenues grew 7.7% YoYat constant currency to reach €1.257 billion ($1.46bn), driven primarily by growth in global subscribers. Physical revenue was a notable highlight, growing 21.3% YoY at constant currency to €524 million ($609.3m), driven by strong vinyl sales in the US and Europe.
Top sellers for the quarter included Taylor Swift, the KPop Demon Hunters soundtrack, Olivia Dean, Stray Kids and Morgan Wallen.
Also earlier this month, UMG confirmed that it has put its plans for a secondary listing on a US stock exchange on hold, citing turbulent market conditions. The company said at the time that “uncertainty in the market creating a meaningful dislocation in UMG’s valuation” meant it was “not the right time to move ahead with a US listing.”
UMG’s shares closed at €15.555 on the Euronext Amsterdam exchange on Friday (March 27).
The company’s stock has fallen around 29% year-to-date, but rose over 4% in early trading on Monday morning following the buyback announcement, trading at approximately €16.24 and giving the company a market capitalization of approximately €29.8 billion.
