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    UMG   NL0015000IY2

UNIVERSAL MUSIC GROUP N.V.

(UMG)
  Report
Real-time Quote. Real-time Euronext Amsterdam - 10/27 11:35:20 am
25.135 EUR   +0.12%
12:21pUniversal Music Posts Higher 3Q Revenue Amid Streaming Push
DJ
12:13pUniversal Music Group’s core earnings up 21%, boosted by streaming
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12:13pUniversal Music Group reports 21% rise in Q3 core earnings
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SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Universal Music Surges on First Day of Trading, Showing Appetite to Invest in Music Industry

09/21/2021 | 04:35am EDT

By Mauro Orru

Shares of Universal Music Group NV surged after the world's largest music company started trading on the Euronext Amsterdam stock exchange.

Early on Tuesday, Universal stock opened about 38% above its reference price of EUR18.50. The opening price would give the company a valuation of roughly 45.78 billion euros ($53.69 billion) based on about 1.8 billion shares outstanding.

This compares with a valuation of roughly $15.4 billion for Universal's smaller rival Warner Music Group Corp. when it listed on the Nasdaq exchange in June last year.

Universal, home to stars including The Weeknd, Billie Eilish, Post Malone and Taylor Swift, is hoping to cash in on a resurgent music industry lifted by the growing popularity of streaming services like Spotify and Apple Music, after years of declining sales.

The strong debut is a sign of investors' confidence in an industry that continues to benefit from consumers spending more time listening to music, a trend accelerated by the coronavirus pandemic.

Universal's listing prospectus had indicated an initial market capitalization of about EUR33 billion, based on the price paid recently for a 10% stake by Pershing Square Holdings Ltd., the investment firm controlled by hedge-fund billionaire William Ackman.

The listing marks an opportunity for Universal to increase its appeal both within the industry and among investors, who so far have had to invest in its owner Vivendi SE to get exposure to the record label.

Vivendi, the media conglomerate steered by the family of French billionaire Vincent Bollore, controlled 70% of Universal. Its shareholders backed plans in June to distribute 60% to existing Vivendi shareholders and list the company in the Netherlands.

Tencent Holdings Ltd. owns another 20% in Universal. The Chinese internet conglomerate doubled its stake last year in a deal that valued the business at about EUR30 billion, with the companies agreeing to work together to broaden opportunities for artists.

Universal, whose stable also includes classic acts such as The Beatles, Rolling Stones, U2, and Andrea Bocelli, owns more than 50 labels spanning all music genres.

The company is targeting revenue growth of more than 10% this year, with earnings before interest, taxes, depreciation, and amortization--a key profit metric for Universal--expected to grow more than 20%.

Universal's forecasts for the year signal confidence in the resilience of streaming even as coronavirus restrictions, which confined live concert audiences and everyday listeners to their own homes, subside.

The company believes streaming is still in its early days, with opportunities for further expansion driven by growth in the number of paid subscribers, even in established markets.

The music business's fortunes started to turn around in 2016, when growth from streaming services offered by the likes of Spotify Technology SA and Apple Inc. began to outweigh declining CD and digital download sales amid rampant online piracy.

The recorded music industry generated $21.6 billion in global revenue in 2020, with streaming accounting for 62% of the total, according to the International Federation of the Phonographic Industry, which represents the recording industry worldwide.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

09-21-21 0434ET

Stocks mentioned in the article
ChangeLast1st jan.
UNIVERSAL MUSIC GROUP N.V. 0.12% 25.135 Real-time Quote.0.00%
VIVENDI SE -0.45% 11.05 Real-time Quote.-57.92%
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Analyst Recommendations on UNIVERSAL MUSIC GROUP N.V.
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Financials
Sales 2021 8 230 M 9 550 M 9 550 M
Net income 2021 1 093 M 1 268 M 1 268 M
Net Debt 2021 1 843 M 2 138 M 2 138 M
P/E ratio 2021 42,0x
Yield 2021 1,20%
Capitalization 45 579 M 52 821 M 52 886 M
EV / Sales 2021 5,76x
EV / Sales 2022 5,20x
Nbr of Employees 9 370
Free-Float 52,0%
Chart UNIVERSAL MUSIC GROUP N.V.
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Universal Music Group N.V. Technical Analysis Chart | MarketScreener
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Technical analysis trends UNIVERSAL MUSIC GROUP N.V.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Last Close Price 25,14 €
Average target price 26,71 €
Spread / Average Target 6,25%
EPS Revisions
Managers and Directors
Lucian C. Grainge Co-Chairman & Chief Executive Officer
Boyd Johnston Muir President-Operations, Chief Financial Officer
Judy Sarah Jarman Craymer Co-Chairman
William Lloyd Tanous Chief Administrative Officer & Executive VP
Margaret Frerejean-Taittinger Independent Non-Executive Director
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