(News Bulletin 247) – The Universal Music Group (UMG) share fell on the Amsterdam Stock Exchange on Thursday despite higher and better-than-expected quarterly results, against a backdrop of a recovery in sales of physical formats.
At 2:10 p.m., the action of the music label – which publishes Taylor Swift and The Weeknd among others – yields 3.9%, showing the largest drop in the AEX index of the Amsterdam Stock Exchange, up 0.1% at the same time.
The former subsidiary of Vivendi announced last night that its adjusted profit before interest, taxes, depreciation and amortization (Ebitda) came to 522 million euros over the first three months of the year, up 14.7 % compared to 455 million euros for the same period last year.
Its quarterly turnover increased by 11.5% to 2.45 billion euros, driven by a 32% jump in sales of physical products, in particular CDs and DVDs in Japan as well as vinyls. .
‘But this rebound is not sustainable’, warned Credit Suisse analysts in a note published in the morning.
Revenues from listening to online platforms (‘streaming’) increased by 1.9% year-on-year, but fell by 2.2% at constant exchange rates.
Analysts point out that these activities are highly dependent on economic conditions and inflationary pressures, which makes them vulnerable to the eventual termination of subscribers’ plans.
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