NASDAQ$WMG
Warner Music Group Corp · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
Announced fourth-quarter and full-year financial results, demonstrating growth in streaming revenue and digital revenue, offset by declines in other areas due to COVID-19 impacts.
Warner Music Group's Q4 2020 results showed a slight increase in revenue, driven by streaming and digital growth, which was partially offset by COVID-19 related business disruptions. The company achieved significant growth in OIBDA and Adjusted EBITDA, reflecting strong operating leverage and digital transformation initiatives.
- Total revenue increased by 0.2%, but decreased by 1.1% in constant currency.
- Digital revenue grew by 15% and contributed 65% of total revenue.
- OIBDA increased by 63% to $155 million.
- Adjusted OIBDA increased by 35% to $174 million.
Headline financials
Revenue & EPS history
WMG · Revenue · Quarterly
$1.13B
Revenue by segment
WMG · $1.13B total across 2 segments · Q4 2020
- Recorded Music$958M+0.5%85.0%
- Music Publishing$169M-2.3%15.0%
Forward guidance
Warner Music Group is confident in its long-term growth prospects, particularly as the areas of its business that have been most impacted by COVID-19 return to normal.
Tailwinds
- Continued momentum in streaming.
- Operating leverage driven by digital transformation.
- Business optimization initiatives.
- Expected recovery in COVID-19 impacted business areas.
- Strong growth in emerging revenue streams like social media and gaming.
Headwinds
- Unfavorable impact of exchange rates on euro-denominated debt.
- Potential for continued COVID-19 related business disruption.
- Decrease in performance, synchronization and mechanical revenue.
- Decline in artist services and expanded-rights revenue due to tour postponements.
- Decrease in licensing revenue due to lower advertising and film deal activity.
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 Q4 2020
-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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