NASDAQ$WMG

Warner Music Group Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Generated record revenue driven by strength across Recorded Music and Music Publishing. Robust streaming performance was driven by growth across traditional and emerging streaming platforms. Margin improvement and double-digit growth in Adjusted OIBDA and Adjusted EBITDA were delivered despite strong recovery in lower-margin revenue streams impacted by COVID. Acquisitions of 300 Entertainment and David Bowie’s Music Publishing Catalog were completed.

Warner Music Group Corp. reported a 21% increase in total revenue, reaching $1.614 billion for the quarter ended December 31, 2021. Net income increased to $188 million, and Adjusted EBITDA increased 31% to $389 million.

  • Total revenue grew by 21% (22% in constant currency) driven by strong digital revenue growth.
  • Digital revenue increased by 21% (22% in constant currency), representing 62.1% of total revenue.
  • Net income was $188 million, a significant increase from $99 million in the prior-year quarter.
  • Adjusted EBITDA increased by 31% to $389 million, with margins improving by 1.9 percentage points to 24.1%.

Headline financials

Total Revenue

$1.61B

Previous: $1.34B+20.9%
EPS (adj)

$0.43

Previous: $0.21+104.8%
Adjusted OIBDA

$355M

Previous: $282M+25.9%
Capital Expenditures

-$34M

Previous: -$18M-88.9%
Free Cash Flow

$153M

Previous: $80M+91.3%
Net Income

$187M

Previous: $98M+90.8%
Operating Income

$239M

Previous: $196M+21.9%
Gross Profit

$796M

Previous: $649M+22.7%
Cash & Equivalents

$450M

Previous: $566M-20.5%
Total Assets

$8.02B

Previous: $6.94B+15.4%

Revenue & EPS history

WMG · Revenue · Quarterly

$1.61B

Q1 2022+20.9%vs Q1 2021
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Revenue by segment

WMG · $1.62B total across 2 segments · Q1 2022

  • Recorded Music
    $1.39B+19.4%
  • Music Publishing
    $229M+30.9%

Forward guidance

Warner Music Group did not provide specific forward guidance in this earnings report.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-2.1%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-2.3%

Avg return

30 days after

30%

7 / 23 earnings

Positive

+19.3%

Q4 2022

Best reaction

-11.2%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+2.2%+10.7%-1.5%
Q1 2026+3.1%+5.6%-1.2%
Q4 2025-2.7%-7.0%-3.8%
Q2 2025-8.1%-8.7%-12.4%
Q1 2025-1.1%+5.0%+7.1%
Q4 2024-5.4%-3.8%-7.5%
Q3 2024+1.0%-2.1%-1.8%
Q2 2024-11.2%-9.8%-17.2%
Q1 2024-3.0%-0.1%-6.8%
Q4 2023-3.2%-1.1%+2.3%
Q3 2023+8.2%+7.6%+7.9%
Q2 2023-8.0%-11.2%-13.0%
Q1 2023-6.4%-7.2%-18.8%
Q4 2022+19.3%+20.8%+31.2%
Q3 2022-6.7%-5.4%-14.2%
Q2 2022-6.9%+6.6%+3.6%
Q1 2022-4.9%-5.5%-18.0%
Q4 2021-9.7%-10.4%-13.1%
Q3 2021-1.7%-4.1%+4.0%
Q2 2021-6.7%-4.3%-9.3%
Q1 2021+8.2%+8.1%+2.2%
Q4 2020+0.6%-2.5%+30.7%
Q3 2020-4.3%-4.8%-4.5%
Q2 2020
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Q4 2019
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Q1 2013
Q4 2012
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Q4 2011
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Q1 2010
Q4 2010
Q2 2010

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