WARNER MUSIC Reports Positive Fiscal Year 2023 Third Quarter Earnings Results on June 30 2023
August 14, 2023
☀️Earnings Overview
On June 30 2023, WARNER MUSIC ($NASDAQ:WMG) revealed their fiscal year 2023 third quarter earnings results, which showed total revenue of USD 1564.0 million, a 9.2% increase from the same period in the previous year. Despite this growth, net income was 1.6% lower than the same period in the previous year, totaling USD 122.0 million.
Stock Price
The results were positive, causing the stock to open at 32.8 and close at 32.7, which is a 7.0% increase from its previous closing price of 30.6. The strong earnings report was attributed to increased revenue from streaming services, digital downloads, and live performance sales. WARNER MUSIC’s successful quarter was also attributed to its strategic decisions to diversify its portfolio and invest in new music genres and emerging technologies. Going forward, WARNER MUSIC is confident that it can continue to deliver strong financial results and remain an industry leader in the global music market. 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 |
| 5.95k | 426 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Warner Music. More…
| Operations | Investing | Financing |
| 755 | -165 | -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 |
| 8.15k | 7.85k | 0.54 |
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 |
| 10.1% | 26.1% | 12.1% |
| FCF Margin | ROE | ROA |
| 9.4% | 168.9% | 5.5% |
Analysis
GoodWhale’s analysis of WARNER MUSIC has revealed it to be classified as a ‘rhino’ type of company, which suggests moderate revenue and earnings growth. Investors who may be interested in this type of company include those who prioritize asset management, cash flows, and debt management. WARNER MUSIC in particular has a high health score of 8/10, indicating that it is capable of riding out any crisis with minimal risk of bankruptcy. In terms of its associated metrics, WARNER MUSIC is strong in medium in dividend, growth, profitability and weak in asset. This suggests that investors interested in WARNER MUSIC should focus on the company’s asset management strategy while taking into account its current financial standing. 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
WARNER MUSIC Group reported their fiscal year 2023 third quarter earnings results on June 30th 2023, showing an overall 9.2% increase in total revenue to USD 1564.0 million compared to the same period last year. Net income was down 1.6%, amounting to USD 122.0 million however. The stock price responded positively to the news, moving up on the same day. Overall, WARNER MUSIC remains a solid long-term investment opportunity, with strong revenue growth, though investors should watch for fluctuations in the net income figures as they are indicative of the company’s performance.
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