UMG & Vivendi UMG … a hairy peach

Research evidence excerpt

UMG & Vivendi UMG … a hairy peach

J P M O R G A N Europe Equity Research

10 June 2026

UMG & Vivendi

UMG … a hairy peach

UMG is a peach of an asset. However, it has a lot of hair on it. The “hair” is frustrating European Media

ACfor existing shareholders, but in our view represents an opportunity for those on the Daniel Kerven

sidelines. The peach continues to get bigger and juicier each year given secular (44-20) 7134-3057

growth, Streaming 2.0 and AI, and in 12 months there should be a lot less hair on it daniel.kerven@jpmorgan.com

… making it a lot more appetising for investors. We maintain our OW rating with a J.P. Morgan Securities plc

PT of €48, which implies a 2030E PE of c26x post SBC (with leverage of 0.7x). Saira Das

(91-22) 6157-3838

A peach of an asset … : UMG offers the most attractive way of playing the growth saira.das@jpmchase.com

of the music industry - it typically represents 9/10 of the top artists, c24% of music J.P. Morgan India Private Limited

publishing, c32% of recorded music, and has a bigger share of the catalogue and the

Specialist Sales contact details:

music that matters. It has a growing share of the fast growing music market, which

offers another decade or two of secular growth from subscriber penetration increasing Scott Silver - Specialist Sales -

European TMT

from 10% to >50% in the longer term, price rises, service innovation, tiering and (44-20) 7134-0412

segmentation. This will drive double digit subscription growth, high single digit group scott.silver@jpmorgan.com

growth, operational gearing and margin expansion, and faster growth in cashflow

Recent Notes:from a depressed base. There are further opportunities to expand its addressable

market and improve its ROIC through artist and label services, fan monetisation and