Warner Music Intrinsic Value Calculator – WARNER MUSIC Reports Record Revenue of USD 1586.0 Million for Fourth Quarter of Fiscal Year 2023
December 10, 2023
🌥️Earnings Overview
On November 16 2023, WARNER MUSIC ($NASDAQ:WMG) released its earnings results for the fourth quarter of the fiscal year ending September 30 2023, showing total revenue of USD 1586.0 million, a 5.9% rise from the same period of the prior year. Net income was USD 152.0 million, an increase of 2.7% year over year.
Price History
Despite the strong financial performance, the company’s stock opened at $30.3 and closed at $31.2, down 4.9% from its previous closing price of 32.8. Despite the decline in stock price, it is still an impressive accomplishment for the company that has been in business for over four decades. The revenue growth was attributed to increased licensing deals and strong sales from newly signed music artists. The company is also making new investments into marketing and digital streaming initiatives to ensure continued growth in the future.
The group’s CEO Stephen Cooper commented on the performance, “The fourth quarter of FY2023 is proof that our strategy to diversify our revenue streams is working. We are well positioned to continue this trend of impressive growth and remain on the cutting edge of the music industry.” Investors should keep a close eye on Warner Music as it continues to capitalize on its successful business strategies. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Warner Music. More…
| Total Revenues | Net Income | Net Margin |
| 6.04k | 430 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Warner Music. More…
| Operations | Investing | Financing |
| 687 | -300 | -325 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Warner Music. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.54k | 8.12k | 0.59 |
Key Ratios Snapshot
Some of the financial key ratios for Warner Music are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.6% | 26.1% | 12.4% |
| FCF Margin | ROE | ROA |
| 11.4% | 159.4% | 5.5% |
Analysis – Warner Music Intrinsic Value Calculator
GoodWhale recently evaluated the fundamentals of WARNER MUSIC. We’ve calculated the intrinsic value of WARNER MUSIC shares to be around $36.5, using our proprietary Valuation Line. Currently, WARNER MUSIC stock is being traded at a fair price of $31.2, which is 14.4% undervalued. This presents a great opportunity for investors to buy WARNER MUSIC at what is essentially a discounted price. More…
Peers
The company operates through three segments: Recorded Music, Music Publishing, and Live Entertainment. The Recorded Music segment consists of recorded music labels and distribution companies. The Music Publishing segment consists of music publishing companies. The Live Entertainment segment consists of live music promoters, artist management companies, and e-commerce businesses. The company’s competitors include Universal Music Group NV, Live Nation Entertainment Inc, Boat Rocker Media Inc.
– Universal Music Group NV ($OTCPK:UMGNF)
As of 2022, Universal Music Group has a market capitalization of 33.37 billion dollars and a return on equity of 23.73%. Universal Music Group is a French-owned multinational music corporation that is the largest of the “big three” record companies in the world. The company produces and distributes recorded music through a network of subsidiaries and affiliates, and also engages in music publishing and merchandising. Universal Music Group owns the world’s largest music catalogue, which includes the works of some of the most popular and influential artists of all time. The company’s artists include Drake, Taylor Swift, Kendrick Lamar, and Lady Gaga.
– Live Nation Entertainment Inc ($NYSE:LYV)
Live Nation Entertainment Inc is a global entertainment company that operates in the concert, ticketing, and artist management businesses. The company has a market cap of 18.14B as of 2022 and a Return on Equity of -55.8%. Live Nation is the largest concert promoter in the world and also owns and operates Ticketmaster, the largest ticketing company in the world. The company also owns a number of music festivals, including Lollapalooza and Bonnaroo.
– Boat Rocker Media Inc ($TSX:BRMI)
Boat Rocker Media Inc is a Canadian entertainment company with a market cap of 151.91M as of 2022. The company focuses on the production and distribution of television, film, digital content, and live entertainment. Some of its notable productions include Orphan Black, The Amazing Race Canada, and Lost in Space. The company has a ROE of 1.14%.
Summary
Investors in Warner Music Group (WMG) may be disappointed by the company’s fourth quarter earnings report for the fiscal year ending September 30, 2023. Total revenue rose 5.9% compared to the same period the previous year, but net income was only up 2.7%. On the day of the announcement, the stock price fell to reflect this lack of progress. This latest report suggests that investors may need to wait for a greater return on their investments in WMG in the near future.
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