Netherlands' UMG H1 revenue rises, but misses estimates
Netherlands' UMG H1 revenue rises, but misses estimates
Overview
Netherlands music entertainment group's H1 revenue rose 5% but missed analyst expectations
Adjusted EBITDA for H1 declined 2% and missed analyst expectations
Revenue growth driven by Downtown acquisition, streaming price hikes, and strong physical sales
Outlook
Company did not provide specific guidance for the current quarter or full year in the press release
Result Drivers
DOWNTOWN ACQUISITION - Revenue growth was driven by the consolidation of Downtown Music Holdings
STREAMING PRICE INCREASES - Higher streaming subscription revenue reflected pricing benefits from Streaming 2.0 agreements
MERCHANDISING DECLINE - Merchandising and Other revenue fell due to the timing of tours and product releases
Company press release: ID:nPn1t6dHva
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Miss | EUR 6.19 bln | EUR 6.46 bln (5 Analysts) |
H1 Adjusted EBITDA | Miss | EUR 1.31 bln | EUR 1.43 bln (5 Analysts) |
H1 Operating Profit |
| EUR 901 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the entertainment production peer group is "buy"
Wall Street's median 12-month price target for Universal Music Group NV is €23.50, about 18.7% above its July 29 closing price of €19.81
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
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July 30 - Sirius XM slightly beats Q2 revenue estimates, raises 2026 guidance
July 28 - France's M6 H1 revenue rises on streaming strength; expects positive cash flow impact from World Cup in H2
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)