(Bloomberg) -- Universal Music Group NV, the record label that represents Taylor Swift, is targeting more than 7% sales growth for five years with the support of subscription and by accelerating superfan monetization.
The world’s biggest record company, also targets adjusted earnings before interest, taxes, depreciation and amortization, a key measure of profitability, at above 10% through 2028, according to financial targets unveiled ahead of its capital markets day on Tuesday.
The shares rose as much as 3.8% and were trading 3.3% higher at €24.17 at 10:54 a.m in Amsterdam.
Universal Music said this growth would be driven “in part by the continued growth in subscription revenue, accelerating superfan monetization, and an expanding partner ecosystem.”
The company, which also represents artists including Billie Eilish and Drake, said it expects subscription revenue to grow between 8% and 10% at a compounded rate in the same period.
In July, Universal Music’s shares dropped the most since the company’s initial public offering after its subscription and streaming revenue growth disappointed investors. Slowdowns in advertising revenue growth roadblocks with social media companies that have become a key part of distributing its music were behind much of the weaker sales.
Still, Swift, who has been on the money-spinning Eras Tour, continues to boost its revenue as merchandising revenue soared 44% in the second quarter.
Spun off from Vivendi SE, Universal Music went public in Amsterdam in September 2021 and it counts billionaire hedge fund manager Bill Ackman among its biggest shareholders.
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