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Record label owned by Taylor Swift and Billie Eilish takes a hit on the Amsterdam stock exchange
Universal Music lost more than a quarter of its stock market value this morning. On the fair In Amsterdam, more than 13 billion euros went up in smoke in a few hours, as investors sold their shares in the music giant en masse.
Investors responded to the new quarterly figures of the music group, which is based in Hilversum. Last night it released the figures. They seemed fine at first. Particularly due to the popularity of artists such as Taylor Swift and Billie Eilish, Universal’s profits increased by almost half in the first half of this year, to more than 900 million euros.
Universal Music also sold almost 15 percent more LPs by its artists, even though the income from digital music is four times greater than the amount collected from physical sound carriers.
Shareholders disappointed
But after closer examination of the figures, shareholders still seemed disappointed with the second quarter performance. Although turnover increased by almost 6 percent, there were concerns about the music company’s main revenue model.
For example, revenues from streaming songs and video clips on platforms such as Spotify and YouTube fell by almost 4 percent. At the same time, subscription growth of 6.9 percent lagged behind the 11 percent that analysts had expected.
End of collaboration with Meta
In a call with analysts, Universal also announced the end of its partnership with Meta, the parent company of Facebook and Instagram. Many video clips from Universal artists are shown on these social media.
Universal also stopped collaborating with TikTok. In May, the two companies entered into a partnership new deal which should make Universal more money.
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