(BFM Stock Exchange) – The Vivendi title benefits from the good results of the record company which recorded solid growth over the first three months of the year.
As often the announcements of Universal Music Group make the rain and the good weather on the Action Vivendi.
Last December, the French company was divided into four, via the IPOs on Canal+ (in London), Havas (Amsterdam) and Louis Hachette Group (in Paris). After this operation, Vivendi is now a portfolio company, managing many minority participations. Only the Gameloft video game publisher is now consolidated in its accounts.
The group still has 9.9% of the capital of Universal Music Group (UMG), record company which was in its lap until 2021 and its introduction to the Amsterdam Stock Exchange.
This participation constitutes by far its most important asset.
Sabrina Carpenter and Kendrick Lamar
According to accounts published by Vivendi last Monday, this share was valued at 4.62 billion euros in group accounts, representing 64% of the total value of its portfolio. And more than Vivendi’s market capitalization (2.8 billion euros).
This explains the influence that UMG’s results can have on Vivendi action. This Wednesday, April 30, the action of the French group takes another 4.2% after the record company published vigorous accounts in the first quarter.
Over the first three months of the year, UMG delivered income of 2.9 billion euros up 11.8% over one year, while its gross operating profit (EBITDA) appreciated 23.1% to 603 million euros.
Oddo BHF stresses that growth in paid streaming by 9.3%has exceeded expectations, as is the Ebitda. “The group highlighted a good conversion rate for free subscriptions to pay subscriptions (with growth of more than 10% out of three of its five main platforms/partners, including probably Spotify and Youtube),” notes the broker.
UMG said Kendrick Lamar, Sabrina Carpenter or Lady Gaga were the locomotives of her sales in this quarter.
Deutsche Bank talks about a “robust start of the year” and confirms his advice to buy on action.
On the Amsterdam Stock Exchange, UMG action takes 4.3% after this publication.
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