Universal Music Group NV reported a 19% increase in subscription revenue for the third quarter, reaching €1.42 billion, driven by price increases and healthy subscriber growth. The Amsterdam-listed company's bounce back follows two prior disappointing periods. CEO Lucian Grainge credited the results to backing extraordinary artists and technology.
Despite the revenue growth, Universal's share price is down 29% this year, touching a record low in September, prompting discussions about taking the company private. Apollo Global Management, TPG, and Blackstone were among firms with whom management held preliminary talks. In May, the company rejected a €56 billion offer from Bill Ackman's Pershing Square Capital Management.
The music industry continues to navigate AI threats, with Spotify also reporting subscriber growth. Universal reported adjusted Ebitda of €729 million, beating analyst expectations of €690.6 million, with a 21.5% margin against an expected 20.7%.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing