- UMG’s 2Q EBITDA was €611 million, a 5.3% increase year-over-year, but below the estimate of €622.9 million.
- Adjusted EBITDA was €676 million, a 4.2% increase year-over-year, yet under the estimate of €683.2 million.
- Adjusted EBITDA margin increased to 22.7%, slightly below the estimated 22.9%.
- Revenue reached €2.98 billion, a 1.6% rise year-over-year, but just shy of the expected €2.99 billion.
- Recorded Music revenue was €2.22 billion, growing by 1.1% year-over-year, but missing the estimate of €2.24 billion.
- Music Publishing revenue surpassed expectations at €570 million, against an estimated €552.8 million.
- Merchandising & Other revenue fell 15% year-over-year to €192 million, below the expected €203.9 million.
- Revenue in constant currency grew by 4.5%, higher than the estimated 3.75%.
- Streaming revenue in constant currency rose by 9.1%, significantly exceeding the estimate of 2.2%.
- Subscription revenue in constant currency increased by 8.5%, close to the anticipated 8.6%.
- Recorded Music revenue in constant currency saw a 3.9% growth, near the estimate of 4.05%.
- Music Publishing revenue in constant currency grew 14.5%, surpassing the estimate of 10.4%.
- Merchandising & Other revenue in constant currency decreased by 12.7%, more than the estimated decline of 5.32%.
- For the first half, EBITDA totaled €1.21 billion, up 14% year-over-year, slightly below the €1.23 billion estimate.
- Recorded Music EBITDA reached €1.09 billion, a 14% increase year-over-year, exceeding the expected €1.07 billion.
- Music Publishing EBITDA was €252 million, a 10% uplift year-over-year, but below the €261.6 million estimate.
- Merchandising & Other EBITDA saw a loss of €4 million, compared to a €18 million profit year-over-year, missing the estimated profit of €15.9 million.
- Net income soared by 57% year-over-year to €1.43 billion, significantly outperforming the estimate of €668 million.
- The COO expressed confidence in UMG’s growth trajectory, highlighting ongoing investments aimed at maximizing long-term value and driving attractive returns.
- Market opinions include 12 buy ratings, 9 hold ratings, and 2 sell ratings.
Universal Music Group NV on Smartkarma
Analysts’ coverage of Universal Music Group NV on Smartkarma highlighted positive sentiments regarding the company’s financial performance in Q1 2025. According to Baptista Research, UMG reported a robust 9.5% increase in revenues and a 10% rise in adjusted EBITDA during this period. The company’s strategic global expansion, along with the successful implementation of initiatives like Streaming 2.0 and responsible AI strategies, were identified as key drivers of growth. Furthermore, the 9.3% growth in subscription revenue displayed strong geographical diversification, with notable gains in developed markets such as the U.S. and Japan, as well as emerging markets like China and Mexico.
A look at Universal Music Group NV Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Universal Music Group N.V., an entertainment company known for producing and distributing music content globally, is poised for a promising long-term outlook based on the Smartkarma Smart Scores. With a strong Growth score of 5 and resilient Momentum and Resilience scores of 4 each, the company demonstrates robust potential for expansion and sustainability in the market. Additionally, Universal Music Group NV earns a respectable Dividend score of 3, highlighting its capacity to provide shareholders with steady returns. While the company’s Value score of 2 indicates room for improvement in terms of valuation, its overall outlook seems optimistic, driven by its solid performance across key factors analyzed.
In conclusion, Universal Music Group N.V., a leading entertainment company specializing in music production and distribution worldwide, showcases a compelling long-term outlook based on the Smartkarma Smart Scores. With a strong emphasis on growth, supported by solid Momentum and Resilience scores, the company is well-positioned to capitalize on future opportunities in the industry. While there is room for enhancement in terms of value and dividend offerings, the company’s overall performance paints a positive picture for investors seeking exposure to the dynamic entertainment sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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