Warner Music profit and revenue fall as recorded music and digital show weakness, and stock slips

Warner Music Group Corp.
WMG,
-0.84%
reported Thursday fiscal first-quarter earnings and revenue that fell from a year ago, as weakness in the music company’s recorded music and digital businesses offset strength in music publishing. The stock slipped 0.4% in premarket trading. Net income fell to $122 million, or 23 cents a share, from $187 million, or 36 cents a share, in the same period a year ago. Excluding nonrecurring items, adjusted net income fell 50.7% to $110 million. The FactSet consensus for earnings per share was 26 cents. Revenue declined 7.8% to $1.49 billion, missing the FactSet consensus of $1.51 billion. Recorded music revenue fell 10.6% to $1.24 billion, with digital revenue down 4.9% to $952 million, and music publishing revenue increased 9.2% to $250 million. “Our results reflect our resilience and operational discipline in the face of macroeconomic headwinds, as well as the impact of the extra week in the prior-year quarter,” said Chief Financial Officer Eric Levin. The stock has soared 37.9% over the past three months through Wednesday while the S&P 500
SPX,
-1.11%
has gained 9.9%.