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Shares in Taylor Swift label Universal Music fall after results

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Shares of Universal Music Group NV plunged in Friday morning trading after the record label behind the Weeknd, Billie Eilish and Taylor Swift booked a lower profit for 2022.

At 0900 GMT, Universal Music shares
UMG,
-4.96%

traded 4.4% lower at EUR21.31.

The world’s largest music company on Thursday posted an annual net profit of 782 million euros ($828.6 million), down 11.7% from 2021. Still, the company said it plans to pay shareholders a dividend of EUR0.51 per share, above the EUR0.40 per share it paid for the previous year. Universal aims to hand 50% of net profit to shareholders.

For the three months to the end of December, overall revenue climbed to EUR2.94 billion from EUR2.52 billion. Revenue from subscriptions grew 11.4% at constant currency to EUR1.04 billion, while ad-supported streaming revenue rose 1.8% to EUR400 million.

However, growth cooled down compared with the third quarter, when streaming revenue grew 5.2% at constant currency. Streaming services boomed at the height of the pandemic as listeners turned to digital when coronavirus restrictions brought live concerts to a standstill, though the pace of growth has declined in recent months.

Adjusted earnings before interest, taxes, depreciation, and amortization–a key profitability metric for Universal–increased to EUR620 million in the fourth quarter from EUR503 million, generating an adjusted margin of 21.1%.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

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Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

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