- UMG’s fourth-quarter EBITDA reached €706 million, surpassing the estimate of €661.1 million.
- Adjusted EBITDA was even higher at €799 million, beating the forecast of €729.4 million.
- The adjusted EBITDA margin stood at 23.2%, slightly above the estimated 22.2%.
- Total revenue for the quarter was €3.44 billion, exceeding the estimate of €3.28 billion.
- Recorded Music revenue came in at €2.57 billion, ahead of the projected €2.45 billion.
- Music Publishing revenue was slightly below expectations at €613 million, with the estimate at €620.7 million.
- Merchandising and Other revenue reached €264 million, significantly outperforming the estimate of €219.9 million.
- In constant currency terms, Recorded Music revenue grew by 6.8%, surpassing the 1.12% forecast.
- Music Publishing revenue in constant currency increased by 7%, though it fell short of the 8.85% prediction.
- Merchandising and Other revenue saw a major rise of 23.4% in constant currency, against an estimate of 3.25%.
- For the full year 2024, EBITDA was €2.33 billion, above the estimated €2.25 billion.
- Recorded Music EBITDA was €2.07 billion, in line with the estimate of €2.04 billion.
- Music Publishing EBITDA amounted to €486 million, topping the expected €480.5 million.
- Merchandising and Other EBITDA came in at €42 million, below the projection of €50.5 million.
- EBIT for the year was €1.78 billion, just exceeding the anticipated €1.74 billion.
- Net income stood at €2.09 billion, notably higher than the forecasted €1.45 billion.
- The final dividend per share was declared at €0.28.
- The annual dividend per share was €0.52, slightly under the €0.53 estimate.
- Analyst opinions include 10 buys, 9 holds, and 2 sells.
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Universal Music Group NV on Smartkarma
Analysts on Smartkarma, such as MBI Deep Dives, are providing insightful coverage of Universal Music Group NV. In a report titled “UMG: The Sound of Music,” MBI Deep Dives delves into the challenges of capitalism capturing the value in the music industry. The report highlights the slow growth in revenue over the years, with the global recorded music industry taking two decades to surpass its 1999 revenue peak. Despite nominal revenue exceeding previous levels by the end of 2021, consumers today spend almost half of what they did on recorded music in 1999 on an inflation-adjusted basis.
A look at Universal Music Group NV Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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 NV, an entertainment company that focuses on producing and distributing music content, has received a mixed outlook based on the Smartkarma Smart Scores analysis. With a growth score of 5, the company seems poised for significant expansion opportunities in the long term, highlighting a positive trajectory for its business. This indicates a strong potential for Universal Music Group to capitalize on market trends and enhance its revenue streams over time. On the other hand, the company scores lower on value and resilience, with scores of 2, indicating some challenges in terms of valuation and adaptability to changing market conditions.
Although Universal Music Group NV has a moderate dividend score of 3 and a momentum score of 3, suggesting a stable dividend and overall market momentum, investors may want to closely monitor how the company addresses the areas of weakness identified by the Smartkarma Smart Scores. Understanding the company’s strengths and weaknesses across different factors can provide valuable insights into its long-term performance and strategic positioning in the competitive entertainment industry landscape.
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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