UMG’s share price closes up 7.9% – adding around $2.5B in value – after Q3 subscription growth beats forecasts
Universal Music Group shares rose 7.9% on Friday, closing at €17.09 after the company reported stronger-than-expected subscription growth for the third quarter. The rebound matters after a steep decline this year, including a sharp fall following its second-quarter results.
The shares reached €18.20 during the session, briefly lifting UMG’s market value by about $4.8 billion; by the close, the increase was around $2.5 billion. Recorded music subscription revenue, excluding Downtown Music Holdings, grew 9.5% year on year at constant currency, above analysts’ 8.2% forecast, while revenue including Downtown rose 19.2% to €1.422 billion. Group revenue was €3.394 billion, up 11.7% at constant currency, and adjusted EBITDA rose 9% to €729 million; publishing growth was more modest.
In short
- UMG shares gained 7.9% after its third-quarter results.
- Recorded music subscription growth beat analysts’ forecasts.
- Shares remain down about 30% so far this year.
Explained simply
Universal Music Group (UMG) is one of the world’s largest music companies. It records and releases music, manages artists’ recordings and earns income from music publishing, which covers the rights to songs.
A growing share of recorded-music income comes from subscriptions to services such as Spotify and Apple Music. UMG also owns Downtown Music Holdings, a music services company, so its reported growth can look different depending on whether Downtown is included.
Investors watch subscription growth because it helps indicate how demand for recorded music is changing and how much income may come from streaming. UMG’s results also cover publishing and other parts of the business, which can grow at different rates.