Vivendi previously sold a 20 percent stake in UMG to a consortium led by Chinese online giant Tencent. In the music spin-off, Vivendi said it was distributing nearly 60 percent of the share capital of UMG to Vivendi shareholders, while retaining a 10.13 percent stake for a minimum period of two years. UMG management has said it was bullish on continuing its success by investing in artists, adopting new technologies and business models, as well as making ongoing revenue from subscriptions, including via deals with the likes of Spotify and Apple. CFO Hervé Philippe has said that a stock buyback program was one option. That is why analysts during a recent earnings conference call asked Vivendi management how it may support the company’s stock price. UMG’s earnings of 753 million euros represented more than 70 percent of Vivendi’s total first-half earnings of 1.07 billion euros.Īs such, UMG spin-off also means that Vivendi, led by CEO Arnaud de Puyfontaine, will lose its crown jewel. The music firm was a key growth driver of Vivendi’s first-half 2021 results, with its earnings soaring 38 percent. Universal Music Group (UMG) management, led by chairman and CEO Lucian Grainge, has touted the business momentum and outlook of the label home of the likes of Lady Gaga, Justin Bieber and Taylor Swift. With the music unit now trading separately, Vivendi shares closed down 19.4 percent in Paris trading on Tuesday. With the music powerhouse’s market listing, French media company Vivendi is cashing in on a bounceback of the music sector thanks to a boom in streaming revenue. Top Canadian TV Regulator Vicky Eatrides to Keynote Banff World Media Festival
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