By Andrea Figueras and Mauro Orru
Universal Music Group stock is on track for its steepest decline since the record label behind Taylor Swift, Lady Gaga, and Bad Bunny went public in 2021, after revenue from subscriptions disappointed investors.
Shares in the world's largest music company plummeted 25% in Amsterdam on Friday, trumping a 23.5% dive on July 25, 2024 that was also triggered by weak revenue growth from subscriptions and streaming.
Those services boomed at the height of the pandemic, when listeners turned to digital platforms to enjoy their favorite artists after coronavirus restrictions brought live concerts to a standstill.
Growth has cooled in recent years, but subscriptions and streaming remain a key focus for investors as they are part of the group's recorded music business, which accounts for the lion's share of revenue.
