(Reuters) -Universal Music Group said on Tuesday it expects annual core profit growth of more than 10% through to 2028 on higher subscription revenue and boosted by the superfans of its artists such as Taylor Swift.
The company, which announced its financial targets through 2028 ahead of a capital markets day, also said it expects compound annual growth of 7% in revenue in the period.
It expects a free cash flow conversion rate (before investing activity) of between 60% and 70%, it said.
For 2023, UMG reported an 11% increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 2.4 billion euros ($2.67 billion). At constant exchange rates, EBITDA gained 14.6%.
UMG shares were up 1.7% in early trading.
($1 = 0.8988 euros)
(Reporting by Michal Aleksandrowicz in Gdansk; Editing by Sharon Singleton)
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