- Warner Music’s first-quarter revenue reached $1.67 billion, aligning with market expectations of $1.66 billion, but experienced a year-over-year decline of 4.7%.
- Recorded Music revenue was reported at $1.35 billion, slightly exceeding the estimate of $1.33 billion, yet fell by 6.9% compared to the previous year.
- Music Publishing revenue increased by 6.3% year-over-year to $323 million, slightly under the expected $326.2 million.
- Earnings per share (EPS) rose to 45 cents, compared to 30 cents in the same quarter last year.
- Operating profit saw a significant drop of 40% year-over-year, amounting to $214 million, missing the estimate of $273.7 million.
- The operating margin declined from 20.3% to 12.8%, below the estimated margin of 16.5%.
- Despite these challenges, Warner Music shares increased by 2.8% in pre-market trading, reaching $33.00 with 2,678 shares exchanged.
- The company received 12 buy ratings, 6 hold ratings, and 2 sell ratings.
Warner Music Group on Smartkarma
Analysts on Smartkarma are bullish on Warner Music Group, with Baptista Research providing insightful coverage on the company’s performance and prospects. In one report titled “Warner Music Group: Its Bold Global Expansion & Streaming Revenue Growth Set to Skyrocket Profits? – Major Drivers,” Warner Music Group’s fourth-quarter and full-year results for 2024 are analyzed. The report highlights a 6% year-over-year revenue increase in the fourth quarter, with both Recorded Music and Music Publishing revenues also experiencing positive growth. The overall outlook is optimistic, with full-year revenue growth of 7% and adjusted OIBDA growth of 11% indicating a promising trajectory.
In another report by Baptista Research, titled “Warner Music Group: Benefitting From The Expanding Streaming Market! – Major Drivers,” the focus is on the company’s performance in the third quarter of the fiscal year ending June 30, 2024. Despite mixed results, Warner Music Group showcased resilience in its subscription streaming segment, which saw accelerated growth of 14% on a normalized basis. This growth was primarily fueled by an increase in subscriber numbers and the successful implementation of price hikes, positioning the company to leverage the expanding streaming market for further gains.
A look at Warner Music Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Warner Music Group Corp., a company that records and publishes music, has received a positive long-term outlook based on Smartkarma Smart Scores. With a Growth score of 4 and a Momentum score of 4, the company seems poised for future expansion and has shown consistent positive performance trends. While the Value and Resilience scores are slightly lower at 2, indicating room for improvement in these areas, the overall outlook for Warner Music Group appears promising.
Recognized for its diverse range of music services including recording, merchandising, sponsoring, touring, and artist management, Warner Music Group caters to a global customer base. With a balanced mix of strengths and areas for enhancement in its Smartkarma Smart Scores, Warner Music Group’s performance outlook reflects a company with growth potential and solid momentum in the music industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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