Universal Music Earnings: Streaming Drives Top-Line Growth; Spotify Price Hike To Boost Revenue

Universal Music reported a stronger-than-expected first half of 2023 as revenue and adjusted EBITDA came in ahead of FactSet projections. The firm benefited from growth across all three segments, but it remains dependent on streaming music, which generated 54% of first-half revenue, up from 53% a year ago. We continue to expect that streaming will drive continued top-line growth as the demand for affordable entertainment options like streaming music, both subscription and ad-supported, will increase and platforms increase prices on a more regular basis. Additionally, we believe that music will remain the main driver of growth for music streaming platforms even as those platforms add other audio products like podcasts and audiobooks. We are maintaining our narrow moat and EUR 31 fair value estimate.