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Universal Music Shares Plunged 24% After Quarterly Earnings Revealed Subscription Growth Slowdown
Universal Music's stock dropped 24% after its earnings report release on Wednesday, which showed a slowdown in streaming subscription growth.
Slowing growth in subscription streaming sent Universal Music Group’s share price down 23.5% following the company’s second-quarter earnings report on Wednesday (July 24). During Wednesday’s earnings call, Michael Nash, UMG’s executive vp of digital strategy, singled out Spotify, YouTube and “local and regional” platforms for continuing to add subscribers. As a percentage of revenue, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved to 22.1% from 21.9% in the prior-year period.
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