Universal Music Group is expected to report double-digit revenue growth year-over-year thanks to another strong quarter of music releases when it posts its latest earnings report after the close of the Euronext market on April 26, 2023.
Analysts at Deutsche Bank have forecast that the company will report a 10% jump in reported revenue year-over-year, 8% in constant currency, to €2,411 million from €2,199 million in the year-ago quarter.
They also expect Universal’s adjusted earnings before interest, taxes, depreciation, and amortization (EBDITA) margin to improve by 80 basis points.
The analysts believe that 1Q was a sound quarter for the Dutch-American multinational music corporation in terms of releases and market share.
“Based on our analysis of weekly charts, UMG artists accounted for 35% of the top 50 songs globally in 1Q 2023, compared to 38% in 1Q last year, which confirms UMG's leadership position,” they wrote in a note to clients dated April 19.
“The market share trends sequentially improved in March with the release of Morgan Wallen’s album. UMG Q1 revenues would also start to benefit from Apple and Amazon subscription price raises.”
The analysts reiterated their ‘Buy’ rating on the stock with a target price of €26. Universal’s shares were trading at €20.70 on Friday.
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