Believe slumps as currency headwinds weigh on organic growth

Believe SA

03/08/2023 09:04

** Shares in digital music distribution services firm
Believe  BLV.PA  drop close to 10% after it slashes organic
growth guidance on currency impacts
    ** Believe cuts FY organic growth view to 14% from 18%
"given current currency translation impacts embedded in the
revenues from digital partners"
    ** It also expects challenges in ad-funded streaming
monetization to continue
    ** J.P.Morgan says, "stronger-than-expected underlying
subscription growth offset by a more muted ad recovery in
emerging markets and an expected FY embedded FX headwind"
    ** Says "Believe is overweight emerging markets – they
typically see faster growth but also incur a higher risk premium
and can see greater FX volatility"
    ** JPM notes the stronger euro is now a headwind
    ** Cuts PT by 1.7% to EUR 11.30 and remains "neutral" on the
stock, with a preference to UMG  UMG.AS 
    ** The shares are heading for their worst day in 1.5 year

 (Reporting by Piotr Lipinski)
 ((piotr.lipinski@tr.com))