Universal Music Group (AMS:UMG) in Pershing Square Semiannual 2024 Q2

Short-Term Challenges Amid Long-Term Growth Prospects

Apr 15, 2025

Summary

Strong revenue and operating income growth despite a slowdown in subscription and streaming revenue.
Idiosyncratic factors and economic environment impacted short-term performance.
Long-term growth potential remains intact with opportunities in monetization and new product offerings.
Management's strategic initiatives and industry leadership position UMG for future success.

In the Pershing Square Semiannual 2024 Letter for Q2, Universal Music Group (AMS:UMG, Financial) was highlighted as a significant holding, despite experiencing a notable decline in stock price due to a slowdown in subscription and streaming revenue growth. The fund manager, Bill Ackman (Trades, Portfolio), emphasized the company's robust overall revenue and operating income growth, which were overshadowed by short-term challenges.

"UMG’s shares experienced a sharp drop when the company reported results last month. While the company’s overall revenue growth of 10% and operating income growth of 11% were both strong, subscription and streaming revenue growth, a key metric, decelerated during the quarter from its recent double-digit growth rate to mid-single digit growth." — Bill Ackman (Trades, Portfolio), Pershing Square Holdings, Q2 2024 Fund Letter

Read full letter at gurufocus Bill Ackman's Pershing Square Semiannual 2024 Letter 2024 Q2 page.

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