July 31 (Reuters) – Universal Music Group shares plunged 23% on Friday after the world’s largest music company reported slower growth in subscription revenue, raising concerns about its streaming momentum.
Subscription revenue growth slowed to 6.7% from 7.9% in the first quarter.
Vivendi, UMG’s largest shareholder, dropped 14% in sympathy, heading for its largest one-day slump since August 2002.
JPMorgan said subscription trends could improve in the second half as UMG’s market-share momentum strengthens and its release slate improves, while a potential cost-saving programme and planned AI-derived services remain future catalysts.
(Reporting by Leo Marchandon in Gdansk)
