UMG NA

Universal Music Group N.V.

TMT


Presented:08/22/2022
Price:€20.31
Cap:$41.00B
Current Price:€24.19
Cap:$49.28B

Presented

Date08/22/2022
Price€20.31
Market Cap$41.00B
Ent ValueN/A
P/E RatioN/A
Book ValueN/A
Div Yield0.98%
Shares O/S1,812.91M
Ave Daily Vol1,552,256
Short IntN/A

Current

Price€24.19
Market Cap$49.28B
Universal Music Group NV engages in the music entertainment business. The firm identifies and develops artists, and produces and distributes music. It operates through the following segments: Recorded Music, Music Publishing, Merchandising and Other, and Corporate Centre. The Recorded Music offers intellectual property licenses granted by UMG to distributors or digital platforms. The Music Publishing segment relates to the use by a third party of the copyrights on musical works owned or administered by UMG. The Merchandising and Other segment represents the merchandising rights of artists and entertainment brands and properties. Its labels and brands include Abbery Road Studios, Bravado, Capitol Music Group, Decca Records, EMI, Island, and Motown. The company was founded in 1924 and is headquartered in Hilversum, The Netherlands.

Publicly traded companies mentioned herein: Universal Music Group NV (UMG NA), Warner Music Group (WMG)

Highlights

The presenter is long shares of Universal Music Group NV (UMG NA), the largest major record label. The industry was somewhat labor intensive historically, having to scout talent and ship records and CDs to retailers, but now social media and streaming platforms do the work for the labels and pay them for the content. In his view, this evolution has transformed UMG into an “incredible” business. Based on improvements to the leadership structure (additions to the Board and realigning compensation with long-term performance) and the upcoming launch of TikTok Music, he is confident in the outlook for UMG going forward, seeing ~25% upside to 2024 consensus EPS and a path to multiple expansion.

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Idea Discussion

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