Warner Music Stock Gains After Q3 Beat, Clocks 9% Revenue Growth Backed By Publishing Revenues

Warner Music Group Corp WMG reported third-quarter 2023 revenue growth of 9% year-on-year to $1.56 billion, beating the consensus of $1.48 billion.

Recorded Music revenue grew by 8% Y/Y at $1.28 billion. 

Music Publishing increased by 16% Y/Y to $283 million, and Digital increased by 9% Y/Y to $1.03 billion.

Adjusted OIBDA margin increased by 120 bps to 19%.

Adjusted EPS of $0.28 beat the consensus of $0.21.

Warner Music generated $146 million in operating cash flow and held $600 million in cash and equivalents. 

Warner Music CEO Robert Kyncl said the company "succeeded with artists and songwriters across the spectrum of genres and generations, with both new releases and catalog projects."

"We expect our momentum to build, led by our extraordinary music and inventive campaigns, as well as improving macro and industry trends," he added.

Price Action: WMG shares were trading higher by 7.69% at $32.92 on the last check Tuesday morning.