Universal Music's merch business earned €11m on €248m in Q3 as touring income fell
The Merchandising and Other segment fell 4.6% in constant currency in the third quarter of 2026, and has made a €3m loss over nine months, even as direct-to-consumer sales grew.
Universal Music Group's merchandise business earned €11m of adjusted EBITDA on revenue of €248m in the third quarter of 2026, down from €13m on €259m a year earlier, the company reported on 29 October 2026.
Revenue in the Merchandising and Other segment fell 4.6% in constant currency. UMG put the decline down to lower touring income, set against a prior-year quarter that included more high-profile tours. Direct-to-consumer revenue grew over the same period, as the company widened a ship-to-home programme for merchandise on certain tours.
The segment's margin slipped to 4.4% from 5.0%. Across the whole group, UMG reported a margin of 21.5%, with adjusted EBITDA of €729m on revenue of €3,394m, which rose 11.7% in constant currency.
A harder nine months
The year-to-date figures are weaker. Merchandising and Other revenue over the nine months to 30 September 2026 was €516m, against €563m a year earlier. Adjusted EBITDA swung from a €10m profit to a €3m loss, and the margin from 1.8% to minus 0.6%. UMG's release lists the loss in merchandising among the factors in its year-to-date results.
Fans were still buying physical objects, though. UMG's physical music revenue reached €392m in the quarter, up 17.4% in constant currency, with Investing.com crediting releases from Mrs. GREEN APPLE, Stray Kids, Olivia Rodrigo, The Beatles, The Rolling Stones and Ariana Grande. Those sales are tied to record releases, while the merch line moves with the touring calendar.
Where Bravado fits
Bravado is UMG's artist merchandise and lifestyle company. Matt Young was promoted to chief executive in March 2026 and reports to UMG chief operating officer Boyd Muir. Bravado says it works across 40 nations and describes itself as a provider of consumer, lifestyle and brand management services. UMG's results do not name Bravado, and the segment is labelled Merchandising and Other, so the figures should be read as the closest public measure of that business rather than its exact accounts.
What it means for acts
These numbers show how thin merchandise margins can be at scale and how closely they follow touring. Acts negotiating a merch deal should expect a partner's appetite for guarantees to move with the tour calendar, so a deal signed before a big run is likely to be the stronger one. Ship-to-home is the line moving the right way: ask any partner how it is offered on tour and who holds the customer data afterwards.
