WMG Earnings Prediction
The chart below shows how WMG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WMG sees a +0.50% change in stock price 10 days leading up to the earnings, and a +1.69% change 10 days following the report. On the earnings day itself, the stock moves by -1.51%. This data can give you a slight idea of what to expect for the next quarter's release.
WMG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.75B
17.47%
10.21%
Gross Margin
45.02%
4.19%
7.86%
Operating Margin
19.28%
28.11%
44.96%
Net Margin
11.04%
32.53%
13.70%
EPS
0.30
30.43%
3.45%
No Data Available
WMG Earnings Analysis
Warner Music Group Corp Corporation (WMG.O) Earnings Conference Call
Positive
Strong Financial Performance: Total company revenue and adjusted OIBDA grew 41% respectively, indicating strong overall financial performance.
Music Revenue Growth: Recorded music revenue grew 4%, while music publishing revenue increased by 7%, showcasing growth across key segments.
Streaming Revenue Increase: Subscription streaming revenue increased by 7%, reflecting continued demand despite previous price increases.
Cash Flow Improvement: Operating cash flow increased by 13% to $332 million, demonstrating improved cash generation capabilities.
Free Cash Flow Increase: Free cash flow rose by 12% to $296 million, highlighting effective cost management and reinvestment strategies.
Negative
Revenue and OIBDA Decline: Total revenue declined 4% in Q1, with adjusted OIBDA decreasing 18%, resulting in a margin of 21.8%, a drop of 390 basis points year-over-year.
Music Revenue Decline: Recorded music revenue decreased 6%, with subscription streaming growth slowing to 7%, indicating a deceleration from previous double-digit growth rates.
Ad-Supported Streaming Decline: Ad-supported streaming revenue declined by 7%, attributed to the timing of deal renewals and content delivery issues with emerging streaming platforms.
Licensing Revenue Decline: Licensing revenue plummeted 39% compared to the prior year quarter, significantly impacted by the expiration of a licensing agreement extension for an artist catalog.
Music Publishing OIBDA Decline: Music Publishing adjusted OIBDA decreased 2%, with a margin of 25.7%, reflecting a decrease of 240 basis points from the previous year.
WMG FAQs
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WMG Earning Call Sentiment
Earnings call transcript: Warner Music Group beats EPS forecast in Q1 2024
WMG.O
-0.87%Positive
The earnings call presents a mixed picture: while there are positives like increased cash flow and strategic partnerships, there are concerns with revenue declines and margin pressures. The Q&A reveals management's evasiveness on critical details, particularly regarding the Spotify deal, which may worry investors. Despite strong cash flow and restructuring benefits, the lack of clear guidance and revenue decline tempers enthusiasm, leading to a neutral sentiment.
