Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Universal Music sees revenue growth, dividend payouts after listing

Stock MarketsAug 25, 2021 01:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: The logo of Universal Music Group (UMG) is seen at a building in Zurich, Switzerland July 20, 2021. REUTERS/Arnd Wiegmann

PARIS/AMSTERDAM (Reuters) - Universal Music Group, which is behind singers such as Justin Bieber and is owned by France's Vivendi (OTC:VIVHY), expects further revenue growth this year as streaming sales boom and it aims to pay out dividends once it lists in Amsterdam, it said.

Due to be floated on Sept. 21, the company helps to promote and distribute boyband BTS and singers such as Taylor Swift and Ariana Grande as well as making earnings from rights.

Universal is already valued at around 33 billion euros ($38.80 billion), based on deals struck so far to sell off part of the group to investors including U.S. billionaire William Ackman. Vivendi will spin off 60% of the unit to its own shareholders as part of the process.

Universal executives said at a capital markets day on Wednesday that they expected 2021 revenue to grow by over 10% at constant currencies, with earnings before interest, taxes, depreciation and amortisation (EBITDA) rising over 20%.

That would mark a bounce from 2020, when annual sales reached 7.4 billion euros, up 4.7% on a comparable basis.

The company also said it would pay out half of its profits as dividends in the medium term, although it did not detail when payments would start.

Vivendi shares turned positive after the disclosures and were up 0.48% at the market close.

"I believe that we're at the beginning of a new cycle, a new wave of growth," Chairman and Chief Executive Lucien Grainge said.

Universal, which competes with rivals such as Warner and Sony (NYSE:SONY), reaps streaming revenues from subscription platforms such as Spotify (NYSE:SPOT), with royalties flowing back to the artists it represents.

It overcame a challenge to the music industry's model in the 2000s when online piracy was rife by leaning on paid downloads and subscriptions, which have caught on.

Physical sales of records have also recovered this year after a blip at the start of COVID-19 lockdowns in 2020, and Universal is pushing ahead with new models, striking music licensing deals with social media sites such as TikTok or in areas like video games and fitness applications.

Vivendi, controlled by French billionaire Vincent Bollore, has not ruled out share buybacks as a way to support Vivendi's stock after the Universal initial public offering (IPO), which will see it spin off its big cash cow.

Vivendi also owns pay-TV group Canal Plus, advertising group Havas and publishing unit Editis.

($1 = 0.8504 euros)

Universal Music sees revenue growth, dividend payouts after listing

Related Articles

Broadband and ads drive Comcast quarterly results
Broadband and ads drive Comcast quarterly results By Reuters - Oct 28, 2021

By Eva Mathews and Helen Coster (Reuters) - Comcast Corp (NASDAQ:CMCSA)'s third-quarter results beat Wall Street expectations on Thursday, lifted by steady broadband growth and a...

Halloween sugar rush sweetens Hershey's 2021 outlook
Halloween sugar rush sweetens Hershey's 2021 outlook By Reuters - Oct 28, 2021

By Mehr Bedi (Reuters) - Hershey Co (NYSE:HSY) raised its annual forecasts for sales and profit on Thursday after posting better-than expected results, benefiting from strong...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email