Universal Music Group loses $16B in market value, plunging 24% after weak streaming reveal

nypost.com:

market capitalization tumble to $39.9 billion, down from $56.5 billion a day earlier, according to FactSet.The music group’s revenue rose 9.6% year-over-year in constant currency, bringing in 2.93 billion euros.

This came in above analysts’ estimates of 2.89 billion euros, according to Visible Alpha.Music subscription revenue grew 6.9%, as major players like Spotify and Apple Music have raised subscription prices.Meanwhile, streaming revenue dropped 3.9%, which Universal attributed to its other streaming partners’ new subscription numbers falling.

This decline is likely due to streaming platforms coming down from a pandemic boom.While studies show people were actually streaming and consuming less audio during the pandemic, streaming platforms still saw a spike in new subscribers.

Spotify, for example, welcomed 6 million new Premium subscribers and beat expectations during pandemic lockdown in the first quarter of 2020.In addition to the post-pandemic normalization, Universal has faced licensing issues with a few major platforms.