Warner Music Group
shares hit a high note Tuesday after the company beat expectations for revenue, driven by digital revenue growth in recorded music and music publishing.
(ticker: WMG) reported fourth-quarter revenue of $1.5 billion, slightly beating Wall Street expectations and rising 9% from the same period last year. Recorded music revenue rose 6%, and music publishing revenue rose 24%. For the full year, recorded music revenue also rose 9%, and the company highlighted streaming growth—its “largest source of revenue.”
The company also reiterated a leadership change—Robert Kyncl will assume the role of CEO next year.
“Against the backdrop of a challenging macro environment, we once again proved music’s resilience, with new commercial opportunities emerging all the time. We’re very well positioned for long-term creative success, and continued top and bottom line growth,” said CEO Steve Cooper.
RBC Capital market analysts, led by Kutgun Maral, maintained their Outperform rating with a price target of $36 and said the company “posted strong results with upside across the board.”
Warner Music stock rose 14.2%, to $30.81 Tuesday. So far this year, the stock has fallen about 28%. The
was up 0.7% on Tuesday.
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