By Pierre Bertrand


Universal Music Group said it plans to cuts costs and reduce headcount as part of a strategic redesign after earnings increased in 2023.

The record label said Wednesday that it made 1.26 billion euros ($1.37 billion) in net profit in the year, compared with EUR782 million in 2022.

Revenue for the three months to the end of December came to EUR3.21 billion, a 9% on-year reported increase.

At constant currency, revenue from subscriptions in that period grew 15% to EUR1.14 billion, while streaming revenue rose 5.6% to EUR395 million. Meanwhile, recorded music revenue came to EUR2.42 billion, a 15% increase.

For the whole year, Universal made EUR11.11 billion in revenue, an 11% on-year increase at constant currency.

Adjusted earnings before interest, taxes, depreciation, and amortization--a key profitability metric for Universal--came to EUR2.37 billion in 2023, the company said, a 15% increase at constant currency.

Universal said it is planning a strategic organizational redesign which will generate EUR250 million in annual run-rate savings by 2026. These savings would be achieved through what the company said were "a combination of headcount reduction and other operational efficiencies."

The first phase of the plan will generate EUR125 million in annual run-rate savings in 2025 including EUR75 million this year.

It added that it would propose a final dividend of EUR0.27 per share, bring its total dividend for 2023 EUR0.51 per share.


Write to Pierre Bertrand at pierre.bertrand@wsj.com


(END) Dow Jones Newswires

02-28-24 1239ET