October 22, 2021

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Common New music Sees Earnings Development, Dividend Payouts After Listing | Investing Information

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PARIS/AMSTERDAM (Reuters) – Universal Tunes Group, which is at the rear of singers this kind of as Justin Bieber and is owned by France’s Vivendi, expects additional earnings advancement this yr as streaming gross sales increase and it aims to pay out out dividends after it lists in Amsterdam, it said.

Owing to be floated on Sept. 21, the enterprise helps to boost and distribute boyband BTS and singers these as Taylor Swift and Ariana Grande as nicely as producing earnings from rights.

Common is previously valued at close to 33 billion euros ($38.80 billion), based on bargains struck so considerably to offer off part of the group to investors like U.S. billionaire William Ackman. Vivendi will spin off 60% of the device to its own shareholders as aspect of the process.

Common executives reported at a capital markets day on Wednesday that they predicted 2021 income to improve by above 10% at consistent currencies, with earnings prior to fascination, taxes, depreciation and amortisation (EBITDA) growing above 20%.

That would mark a bounce from 2020, when once-a-year gross sales achieved 7.4 billion euros, up 4.7% on a similar foundation.

The enterprise also explained it would spend out fifty percent of its gains as dividends in the medium term, even though it did not detail when payments would start off.

Vivendi shares turned beneficial just after the disclosures and ended up up .48% at the market place near.

“I consider that we are at the commencing of a new cycle, a new wave of advancement,” Chairman and Main Executive Lucien Grainge explained.

Universal, which competes with rivals these types of as Warner and Sony, reaps streaming revenues from membership platforms this kind of as Spotify, with royalties flowing back to the artists it represents.

It overcame a problem to the songs industry’s product in the 2000s when online piracy was rife by leaning on paid downloads and subscriptions, which have caught on.

Bodily gross sales of documents have also recovered this 12 months soon after a blip at the begin of COVID-19 lockdowns in 2020, and Common is pushing forward with new versions, hanging audio licensing discounts with social media web-sites these kinds of as TikTok or in spots like video clip online games and conditioning applications.

Vivendi, controlled by French billionaire Vincent Bollore, has not ruled out share buybacks as a way to assistance Vivendi’s inventory just after the Universal original general public presenting (IPO), which will see it spin off its huge cash cow.

Vivendi also owns shell out-Television group Canal In addition, promoting group Havas and publishing unit Editis.

(Reporting by Sarah White and Gwenaelle Barzic in Paris and Toby Sterling in Amsterdam, Crafting by Dominique Vidalon and Sarah White Modifying by Benoit Van Overstraeten and Barbara Lewis)

Copyright 2021 Thomson Reuters.

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