Universal Music Group (AMS:UMG) Full Year 2024 Results
Key Financial Results
- Revenue: €11.8b (up 6.5% from FY 2023).
- Net income: €2.09b (up 66% from FY 2023).
- Profit margin: 18% (up from 11% in FY 2023). The increase in margin was primarily driven by higher revenue.
- EPS: €1.14 (up from €0.69 in FY 2023).
All figures shown in the chart above are for the trailing 12 month (TTM) period
Universal Music Group Revenues and Earnings Beat Expectations
Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 33%.
The primary driver behind last 12 months revenue was the Recorded Music segment contributing a total revenue of €8.90b (75% of total revenue). Notably, cost of sales worth €6.75b amounted to 57% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to €2.85b (91% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of €145.0m. Explore how UMG's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Entertainment industry in Europe.
Performance of the market in the Netherlands.
The company's shares are up 1.5% from a week ago.
Risk Analysis
It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Universal Music Group, and understanding this should be part of your investment process.
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