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Let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll with Lizzie Burdon, and we're joined by Bloomberg reporter Chloe Meda for more. Chloe, good morning. Let's start with Universal Music Group subscription revenue growing more than expected. What's going on?
Oh yeah, reported revenue ahead of expectations for the third quarter, and that's thanks to two things in particular. So the omnipresident Taylor Swift with really strong sales of her latest album, and then also a really strong performance of the soundtrack album for the hit next flip Netflix film k POB Demon Hunters, which I've not seen, but apparently it was really huge, and so that really boosted the shares this morning. After quite an uneven performance over the last few months.
Universal is in quite an interesting position of having to adapt to this to the music industry created by AI, of course, so instead of fighting against it, it's actually decided to join forces with an AI music startup to collaborate on a new music creation and streaming service which essentially will automate that music making process with a tool that is trained on license music from artists. So it's
doing that. It's also signed a partnership with Spotify to develop what it has called a responsible AI products that respect artists copyright. So something definitely to watch going forward because all of that is really likely to reshape the music industry in quite significant ways, and labels have to find a way to protect themselves against those AI songs taking that market share.
Yeah, that's really interesting. I've also not watched KPARP Demon Hunters, but I have listened to a very long podcast discussing Life of a shell Girl, so I feel fully up to date on the cultural analysis of Taylor Sola this album.
Absolutely no shame there from Star Carl. I want to take it right to say for Territory Bank Earnings erst raising its outlook for a year, and of course they's out of Austria.
One of the updates from them.
Yeah, so they raise their net interest income and their capital guidance this morning, which moved the shares higher, with analysts noting that a strong capital position and also improving profitability for US, so it's essentially building up its capital cushion to help it fund the acquisition of Santandre's operations in Poland. So this is a deal that was announced in May. It's buying those Polish operations for about seven
billion euros, which makes it its largest deal ever. So it's looking to pay for the transaction with a few different ways, so with internal fund so by retaining earnings and also temporarily reducing payouts to investors. But then it's also freeing up capital by ufloading risks related to a corporate loan portfolio that's worth more than ten billion euros.
So it seems that the plan to fund that acquisition is being taken quite well by investors, even though it does it does involve for having to reduce some payouts. The net interest income guidance boost is also quite reassuring and it really confirms that lending volumes are quite strong in markets like Czechia and Slovakia as well. So it's overall quite a positive update from ASTA and that really moved the shats this morning.
Finally, Chloe, we're going to talk about Peak reporting better than expected third quarter sales.
Yeah, so that is a Spanish company and Catalan company that makes perfumes.
And that's that wrong.
Well, I think it's pooche, but checked. I checked this morning. But I mean, I do not trust me on that. I have no clear idea, but yeah.
You're right, Catalan versus Nish pronunciation anyway.
Yea. So it makes perfumes and makeup and reported better than expected sales and it also upgraded the guidance for the last three months of the year, so it said it at actually a really solid start to the fourth quarter, which obviously is the most important quarter for those kinds of companies. And the update also suggested a potential rebound in the fragrance's segment, which is very welcome after quite
a bit of weakness in that particular division. It's a really important one because it's got quite a much higher margin than that makeup and skincare segments that are growing much faster. That recovery there in those perfumes is a relief. Some ane lists did say that the company did not address any questions about the growth beyond twenty twenty five, but for now, investors seem to be happy with the positive twenty twenty five performance.
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