Universal Music Group has revealed that it expects revenues to increase by more than 10% in 2021.
Parent company Vivendi hosted an online Captial Markets Day for investors and analysts ahead of the UMG IPO in Amsterdam on September 21. The IPO involves Vivendi distributing 60% of UMG to shareholders.
Executives including CEO & chairman Sir Lucian Grainge, UMPG CEO & chairman Jody Gerson, EVP of digital strategy Michael Nash, Interscope CEO John Janick and Central Europe and Deutsche Grammophon CEO & chairman Frank Briegmann took part in the Capital Markets Day.
UMG is valued at around €33 billion, following the sale of a 7.1% stake in the major to Pershing Square Holdings.
UMG execs said that the major is expected to grow revenues by more than 10% in 2021. For the first half of the year, revenues have increased by 11% (17.3% at constant currency) year-on-year to €3.83bn.
EBITDA is set to increase by more than 20% in 2021. Half of net profits will be paid out as dividends.
Last year, the major’s revenues increased by 4.7% year-on-year at constant currency to €7.43bn.
"I believe that we're at the beginning of a new cycle, a new wave of growth," said Sir Lucian Grainge.
UMG identified stable and recurring revenues from both streaming and publishing as accounting for 67.5% of revenues in 2020, compared to 61.1% in the prior year.
Physical sales at the major have also increased this year following the impact of Covid on sales in 2020.