Universal Music Group’s stock plunged 24% on Thursday, erasing more than $16 billion in market value after it revealed its revenue growth from subscription and streaming services fell below expectations.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.
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.Amazon bleeding billions of dollars from money-losing Alexa speakers: reportIn addition to the post-pandemic normalization, Universal has faced licensing issues with a few major platforms. Universal physical revenue jumped 14.
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