Edel - Digital and physical up in harmony

Edel’s H121 figures showed good progress, with revenues ahead by 11% to €123.3m and an EBITDA margin of 13.0%, up from 9.2% in H120. Digital revenues continued to benefit from the growth of the music streaming platforms, while the continuing popularity of vinyl is supporting results at optimal media. The expansion of co-operation with Universal Music Group bodes well particularly for FY22 and on, with guidance increased also for FY21. The share price is up 83% over the past 12 months yet it continues to trade at a discount to global entertainment and publishing stocks on historical EV/EBITDA and EV/sales multiples, partly due to limited liquidity.