Universal Music Group NV
UMG: XAMS (NLD)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| €45.00 | Wjbhsg | Ngdhjjtn |
Universal Post Strong 1Q Revenue Growth; Subscription Streaming Outpaced by Ad-Supported
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Universal Music posted strong first-quarter revenue growth of 22%, or 17% in constant currency, coming ahead of FactSet consensus expectations. The topline expansion was driven by growth at recorded music, music publishing, and merchandising. Similar to its former parent, Vivendi, the firm reports only revenue and total company adjusted EBITDA for the first and third quarters. We are maintaining our narrow-moat rating and our fair value estimate of EUR 31.