Universal Music Group announced on Wednesday that it will sell half of its equity stake in Spotify as part of a strategy to enhance shareholder value and support its ongoing share repurchase program. The sale proceeds are expected to be initially allocated to expanding Universal’s buyback plan and shared with artists in accordance with the company's compensation policies.

The world’s largest music company also revealed plans to double its existing share buyback authorization by seeking shareholder approval at its upcoming annual general meeting to initiate an additional 500 million euros in repurchases. Universal’s board cited a view that the company’s shares are undervalued relative to its current business performance and future prospects.

For the first quarter, Universal Music reported revenue of 3.4 billion euros, which remained unchanged from the same period last year in reported terms but represented an increase of 8.1 percent when adjusted for constant currency. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 3.8 percent to 636 million euros, a result the company attributed in part to the impact of a weaker U.S. dollar.

The decision to monetize part of its Spotify stake underscores Universal’s effort to balance capital return initiatives with investments in its core music business. The company’s recent performance highlights resilience amid currency fluctuations and evolving market dynamics in the global music industry.