Bloomberg – The actions of Universal Music Group NV rose up to 7.1% this Wednesday after reporting sales in the first quarter that overcome the estimates of analysts, driven by the strong growth of subscribers.
The income of the record of artists such as Taylor Swift and Sabrina Carpenter increased 9.5% compared to a year agoadjusted by monetary fluctuations, up to 2.9 billion euros (US $ 3,310 million), said Universal in a statement after Tuesday’s market hours. This figure contrasts with the average estimate of analysts of 2,760 million euros, according to data collected by Bloomberg
Revenue from recorded music subscriptions increased 9.3% to constant currency. Analysts surveyed by Bloomberg They had estimated a growth of 7.12%.
It is the third quarter in which Universal exceeds estimates thanks to the growth of subscriptions. The solid growth of the world’s largest musical company demonstrates that consumers in digital and live music is resistant, despite general economic anxiety. Citing Bob Dylan, the CEO of Universal, Lucian Graininge, He praised the music industry as “a refuge against the storm” in times of uncertainty In a call with analysts.
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The shares rose 5% to 26.25 euros at 10:34 am in Amsterdam, after previously rising to 26.79 euros.
Streaming income – universal free services financed with advertising – increased 0.3% in constant currency in the quarter. “Consumption continues to move from the best monetized video platforms to short format platformsthat they are not yet so well monetized, ”said the company in the statement.
Universal has focused on winning new subscribers making listeners of free streaming levels and advertising at premium payment levels, which increases user income.
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The record company said she feels encouraged by the Conversations with partners such as Spotify about the deployment of superpremium subscription levels. Michael Nash, Executive Vice President and Digital Director of Universal, told analysts that the company hopes to publicly detailed these plans at the end of this year. Spotify’s own perspectives on benefits and growth of subscribers disappointed the market on Tuesday.
Universal also reported adjusted benefits before interest, taxes, depreciation and amortizations of 661 million euros. The analysts had planned 657.4 million euros.
Among the artists who sold the most in the first quarter are Kendrick Lamar, Sabrina Carpenter, Lady Gaga, The Weeknd and Mrs. Green Apple.
Read more at Bloomberg.com
