April 29 – Universal Music Group on Wednesday said it would sell half its equity stake in Spotify and double its share buyback program, as the world’s largest music company reported first-quarter revenue held back by a weaker U.S. dollar.
The world’s largest music company said its board had authorized the monetization of half of its equity stake in Spotify, with proceeds directed initially toward its buyback program and shared with artists under the company’s compensation policies.
Universal Music also said it intends to initiate a further 500 million euros share buyback pending shareholder approval at its annual general meeting, doubling its total buyback authorization.
The company said its board considers its shares undervalued relative to its business performance and prospects.
Revenue came in at 2.9 billion ($3.4 billion) euros, flat year-over-year in reported terms but up 8.1% in constant currency.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 3.8% to 636 million euros, but rose 3.9% in constant currency.Â
Top sellers in the quarter included BTS, Taylor Swift, Olivia Dean, Morgan Wallen and the K-Pop Demon Hunters soundtrack, the company said.Â
($1 = 0.8547 euros)
(Reporting by Leo Marchandon in Gdansk; Editing by Matt Scuffham)
