NASDAQ$WMG

Warner Music Group Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported results for the fiscal second quarter, demonstrating underlying growth in recorded music streaming revenue and continued momentum in music publishing.

Warner Music Group Corp. reported a 2% increase in total revenue (5% in constant currency) for the quarter ended March 31, 2023. Digital revenue increased by 1% (4% in constant currency). Net income was $37 million, while Adjusted OIBDA increased by 4% to $286 million.

  • Total revenue increased 2% or 5% in constant currency.
  • Digital revenue increased 1% or 4% in constant currency.
  • Adjusted OIBDA increased 4% to $286 million versus $274 million in the prior-year quarter or 8% in constant currency.
  • Net income was $37 million versus $92 million in the prior-year quarter.

Headline financials

Total Revenue

$1.4B

Previous: $1.38B+1.7%
EPS (adj)

$0.20

Previous: $0.22-9.1%
Adjusted OIBDA

$286M

Previous: $274M+4.4%
Capital Expenditures

-$56M

Previous: -$62M+9.7%
Free Cash Flow

-$22M

Previous: $30M-173.3%
Net Income

$34M

Previous: $92M-63.0%
Operating Income

$124M

Previous: $166M-25.3%
Gross Profit

$678M

Previous: $679M-0.1%
Cash & Equivalents

$601M

Previous: $385M+56.1%
Total Assets

$8.01B

Previous: $7.78B+2.9%

Revenue & EPS history

WMG · Revenue · Quarterly

$1.4B

Q2 2023+1.7%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

WMG · $1.4B total across 2 segments · Q2 2023

  • Recorded Music
    $1.14B-0.3%
  • Music Publishing
    $257M+11.7%

Forward guidance

Company is optimistic about the second half of the year, with a more robust schedule that includes the return of worldwide superstars and new artists breaking globally. WMG is investing in the artists, songwriters, team, and technology that will deliver continued growth and long-term success.

Tailwinds

  • Continued momentum in music publishing.
  • More robust release schedule expected.
  • Investment in tech-enabled strategy.
  • Focus on fiscal responsibility.
  • Commitment to A&R and marketing excellence.

Headwinds

  • Macroeconomic headwinds.
  • Currency headwinds.
  • Release slate headwinds impacted revenue.
  • Operating income decreased primarily due to severance costs related to the restructuring plan.
  • OIBDA decreased primarily due to severance costs and executive transition costs.

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 Q2 2023

Historical avgQ2 2023

-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
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2010
Q3 2011
Q2 2011
Q1 2010
Q4 2010
Q2 2010

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