Warner Music Q1 Growth Slows, EPS Dops Y-o-Y

Warner Music Group Corp WMG reported second-quarter FY22 revenue growth of 10% year-on-year to $1.376 billion, missing the consensus of $1.38 billion.
Recorded Music revenue grew 8% Y/Y to $1.15 billion. Music Publishing increased 20% Y/Y to $230 million, and Digital grew 8% Y/Y to $931 billion.
Adjusted OIBDA margin decreased 50 bps to 19.9% due to revenue mix and growth of lower-margin revenue streams.
Adjusted EBITDA margin decreased 90 bps to 20.5%.
EPS was $0.18, down from $0.22 last year.
Warner Music generated $44 million (-77% Y/Y) in operating cash flow and held $385 million in cash and equivalents. Free cash flow fell 88% Y/Y for $16 million.
CFO Eric Levin said, "While our core business continues to flourish, new growth vectors are constantly emerging."
Price action: WMG shares traded lower by 5.65% at $25.76 on the last check Tuesday.
photo via wikimedia Commons

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