NASDAQ$WMG

Warner Music Group Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported results for the fiscal third quarter, showing revenue growth and adjusted OIBDA increase.

Warner Music Group reported a 9% increase in total revenue and a 16% increase in Adjusted OIBDA for the third quarter of 2023. The company's growth was driven by improvements in streaming and music publishing revenue.

  • Improved Streaming Growth Driven by Stronger Release Slate with Momentum Expected to Carry into Q4
  • Robust Growth in Music Publishing Underpinned by Acceleration in Digital Revenue
  • Adjusted OIBDA Growth and Margin Expansion Reinforce Confidence in High End of Full-Year Margin Guidance (100 basis points)
  • Operating Cash Flow Conversion of 49% of Adjusted OIBDA with Expectation to Deliver 50% - 60% Conversion for Full Year

Headline financials

Total Revenue

$1.56B

Previous: $1.43B+9.2%
EPS (adj)

$0.28

Previous: $0.28+0.0%
Adjusted OIBDA

$297M

No prior period
Capital Expenditures

-$89M

Previous: -$97M+8.2%
Free Cash Flow

$33M

Previous: $27M+22.2%
Net Income

$122M

Previous: $124M-1.6%
Operating Income

$189M

Previous: $146M+29.5%
Gross Profit

$714M

Previous: $666M+7.2%
Cash & Equivalents

$600M

Previous: $345M+73.9%
Total Assets

$8.15B

Previous: $7.7B+5.9%

Revenue & EPS history

WMG · Revenue · Quarterly

$1.56B

Q3 2023+9.2%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

WMG · $1.57B total across 2 segments · Q3 2023

  • Recorded Music
    $1.28B+7.8%
  • Music Publishing
    $283M+15.5%

Forward guidance

Warner Music Group is confident in its full-year margin and operating cash flow targets. The market's adoption of subscription price increases, combined with the ongoing evolution of our key partnerships, gives us tremendous optimism for the future of streaming growth.

Tailwinds

  • Momentum expected to carry into Q4
  • Acceleration in Digital Revenue
  • Confidence in High End of Full-Year Margin Guidance (100 basis points)
  • Expectation to Deliver 50% - 60% Conversion for Full Year
  • Tremendous optimism for the future of streaming growth

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 Q3 2023

Historical avgQ3 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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