NASDAQ$WMG
Warner Music Group Corp · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
WMG's financial performance remained solid, marked by growth in total revenue, digital revenue, and net income, despite facing challenges from foreign currency exchange rates and market-related slowdowns.
Warner Music Group (WMG) reported a 7% increase in total revenue (12% in constant currency) for the third quarter ended June 30, 2022. Digital revenue grew by 2% (6% in constant currency). Net income increased to $125 million, compared to $61 million in the prior-year quarter. The company's performance was driven by streaming growth and recovery of artist services, despite facing headwinds from the advertising market and unfavorable foreign currency exchange rates.
- Total revenue grew by 7% (12% in constant currency), driven by solid underlying streaming growth and recovery of artist services.
- Net income increased significantly to $125 million, compared to $61 million in the prior-year quarter.
- Music Publishing revenue continued its momentum with double-digit growth.
- Cash provided by operating activities increased by 79% to $163 million.
Headline financials
Revenue & EPS history
WMG · Revenue · Quarterly
$1.43B
Revenue by segment
WMG · $1.43B total across 2 segments · Q3 2022
- Recorded Music$1.19B+3.2%82.9%
- Music Publishing$245M+29.6%17.1%
Forward guidance
Warner Music Group anticipates a strong end to the fiscal year, driven by new releases and the globalization and diversification of the business.
Tailwinds
- New wave of amazing releases expected to drive strong end to fiscal year
- Scale to best capitalize on trends in artist development
- Agility and resources to propel globalization
- Diversification of business will continue
- Significant runway ahead in core streaming business
Headwinds
- Slowdown in the advertising market
- One-time items affecting year-over-year comparisons
- Unfavorable impact of exchange rates
- Lower-margin artist services and expanded-rights revenue affecting revenue mix
- Higher amortization expenses due to recent acquisitions and capital spending
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q3 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
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2025 | — | — | — | |
| 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% | |
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