NASDAQ$WMG

Warner Music Group Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported strong Q4 performance with growth across all revenue lines and margin expansion in constant currency.

Warner Music Group Corp. reported a strong fourth quarter with revenue growth of 9% (16% in constant currency) and net income of $150 million, driven by digital revenue growth and strong performance in both Recorded Music and Music Publishing.

  • Total revenue grew by 9% or 16% in constant currency.
  • Digital revenue grew by 7% or 12% in constant currency.
  • Net income increased to $150 million compared to $30 million in the prior-year quarter.
  • Adjusted OIBDA increased 22% to $265 million versus $218 million in the prior-year quarter, or 33% in constant currency.

Headline financials

Total Revenue

$1.5B

Previous: $1.38B+8.8%
EPS (adj)

$0.32

Previous: $0.12+166.7%
Free Cash Flow

$368M

Previous: $193M+90.7%
Net Income

$150M

Previous: $30M+400.0%
Operating Income

$163M

Previous: $100M+63.0%
Cash & Equivalents

$584M

Previous: $499M+17.0%
Total Assets

$7.83B

Previous: $7.21B+8.6%

Revenue & EPS history

WMG · Revenue · Quarterly

$1.5B

Q4 2022+8.8%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

WMG · $1.5B total across 2 segments · Q4 2022

  • Recorded Music
    $1.24B+6.1%
  • Music Publishing
    $254M+23.9%

Forward guidance

The company is excited about upcoming releases from top artists and collaborations in music, film, TV, social media, fitness, and gaming.

Tailwinds

  • Amazing releases from the world’s hottest artists
  • Innovative tech collaborations
  • Strengthened position at the intersection of music, film, TV
  • Strengthened position at the intersection of social media, fitness, and gaming.
  • Long-term creative success

Headwinds

  • Challenging macro environment
  • Market-related slowdown in ad-supported revenue
  • Impact of exchange rates
  • Revenue mix due to the growth of lower-margin artist services and expanded-rights revenue
  • Shift in the timing of the financial transformation initiative.

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 Q4 2022

Historical avgQ4 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
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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