Universal Music Group NV’s shares fell as much as 30%, the biggest decline since the company’s initial public offering, after its subscription and streaming revenue growth disappointed investors.
The world’s biggest record label, which represents artists including Taylor Swift and Drake, said its subscription revenue in recorded music grew 6.9% in constant currency terms in the second quarter, in a statement late on Wednesday. That missed estimates for a growth of 11% in a Bloomberg survey of analysts.
The stock dropped 28% to €20.36 at 9:47 a.m. in Amsterdam trading on Thursday after earlier declining to a low of €20.
Streaming revenue, which depends on the advertising market, declined due to a “deceleration in growth at key advertising-based platform partners as well as shortfalls on certain platforms related to the timing of deal renewals,” the company said after market close on Wednesday.
Universal Music has been pushing for platforms to compensate artists fairly and has advocated for a new streaming royalty model. The company started pulling its music from ByteDance Ltd.-owned TikTok in February after talks to extend a licensing deal failed. In May, it reached a deal with TikTok that included better pay for songwriters and artists, new promotional agreements and protections against AI-generated music.
Earlier this year, it kicked off a reorganization to generate €250 million in annual savings by 2026, including through job cuts.
Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.
Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.
Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.
Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.
Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
