Universal Music Group shares fell 25 per cent on Friday, wiping €9bn off its market value after the world’s largest music company missed subscription‑revenue growth expectations for the second quarter.

Subscription revenue growth slowed to 6.7 per cent from 7.9 per cent in Q1, and the earnings margin dropped to 18.5 per cent from 20.5 per cent a year earlier. Net profit fell 85 per cent to €222mn and free cash flow dropped to €24mn from €163mn a year earlier, while Spotify and Apple raised streaming prices this year. JPMorgan called the quarter “not a good quarter.”

The decline follows a rejected €55bn takeover bid from Bill Ackman’s Pershing Square and the sale of Ackman’s €1.4bn stake in June. The Bolloré family’s Vivendi, holding 10 per cent, fell 17 per cent in Paris. Universal reported Q2 revenue of €3.3bn, up 13.3 per cent year‑on‑year, helped by the Downtown Music acquisition.

Chief executive Lucian Grainge insisted the company is “delivering on our strategic plan,” highlighting top artists such as Taylor Swift, Drake and BTS, and outlined plans to boost subscription revenue through superfan tiers and exclusive bundles. Grainge said the firm is capitalising on new technologies and the evolving music ecosystem.