Wednesday, March 22, 2023
HomeMarketWarner Music profit and revenue fall as recorded music and digital show...

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

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Warner Music Group Corp.
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
has gained 9.9%.


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