Why Are Warner Music Shares Trading Higher Monday Premarket?

Warner Music Group Corp WMG reported fourth-quarter FY21 revenue growth of 22% year-on-year to $1.38 billion, beating the consensus of $1.35 billion.
Recorded Music revenue grew 22% Y/Y to $1.17 billion. Music Publishing increased 21% Y/Y to $205 million, and Digital grew 19% Y/Y to $926 million.
Adjusted OIBDA margin increased 30 bps to 15.8% due to strong operating performance. Adjusted EBITDA margin improved 150 bps to 17.2%.
EPS of $0.05 may not be comparable to the consensus of $0.15.
Warner Music generated $228 million in operating cash flow and held $499 million in cash and equivalents.
“By delivering for new artists and songwriters, returning superstars, and global legends, we’ve also delivered outstanding results in 2021, CEO Steve Cooper said.
Even as certain revenue was impacted by COVID, the strength and resilience of our music propelled us to double-digit revenue growth and margin expansion in 2021,” acting CFO Lou Dickler added.
Price action: WMG shares traded higher 3.41% at $50 premarket on the last check Monday.

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