UMG: share collapses on slower growth in streaming
(CercleFinance.com) - Universal Music Group last night reported Q2 results in line with expectations, although the slowdown in its streaming growth caused the stock to fall sharply on Thursday in Amsterdam.
Sales rose 8.7% to E2.9bn, including growth of 9.6% at constant exchange rates, notably thanks to Taylor Swift and Billie Eilish sales.
Adjusted Ebitda rose 10% to E649m, including 11.3% growth at constant exchange rates, i.e. a margin of 22.1%, up 0.2%.
However, growth in revenues from subscriptions and streaming - an indicator closely followed by investors - slowed to +6.9% over the quarter (at constant exchange rates), compared with +12.5% in Q1 and the consensus of 11%.
UBS says that this phenomenon could call into question their buy recommendation on the stock.
The 7% growth in subscriptions announced by UMG contrasts with the 21% growth reported by Spotify for the same quarter, analysts note.
Listed on Euronext Amsterdam, the share collapsed over 26% on Thursday morning in the wake of these announcements.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
Sales rose 8.7% to E2.9bn, including growth of 9.6% at constant exchange rates, notably thanks to Taylor Swift and Billie Eilish sales.
Adjusted Ebitda rose 10% to E649m, including 11.3% growth at constant exchange rates, i.e. a margin of 22.1%, up 0.2%.
However, growth in revenues from subscriptions and streaming - an indicator closely followed by investors - slowed to +6.9% over the quarter (at constant exchange rates), compared with +12.5% in Q1 and the consensus of 11%.
UBS says that this phenomenon could call into question their buy recommendation on the stock.
The 7% growth in subscriptions announced by UMG contrasts with the 21% growth reported by Spotify for the same quarter, analysts note.
Listed on Euronext Amsterdam, the share collapsed over 26% on Thursday morning in the wake of these announcements.
Copyright (c) 2024 CercleFinance.com. All rights reserved.