What's Going On With Warner Music Group Shares Today?

Warner Music Group Corp WMG shares are down today after it reported Q4 FY23 results.

Revenue grew 6% Y/Y to $1.59 billion, beating the consensus of $1.57 billion.

Recorded Music revenue grew by 4% Y/Y at $1.29 billion in the quarter. Music Publishing revenue increased by 17% Y/Y to $298 million, and Digital increased by 8% Y/Y to $1.07 billion.

Adjusted OIBDA rose 20% Y/Y to $317 million with margin increased by 230 bps to 20.0%. Adjusted EPS of $0.34 beat the consensus of $0.25.

Warner Music held $641 million in cash and equivalents as of September 30, 2023. Operating cash flow decreased 17% to $338 million from $406 million in the prior-year quarter.

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Bryan Castellani, CFO, said, "Our performance in the quarter was underpinned by a solid release slate and momentum in our Recorded Music streaming growth. This fueled our second-half improvement which, combined with our disciplined cost management, resulted in robust Adjusted OIBDA growth and margin expansion for the full year."

Also Read: Warner Music Expands Portfolio with Majority Stake in 10K Projects, Bolstering Next-Gen Talent

"We are excited about the opportunities that lie ahead for WMG to capitalize on favorable industry trends and drive shareholder value through profitable growth and healthy cash flow conversion in 2024 and beyond."

Also Read: Warner Music Group Faces Distribution Shift - Analysts Are Bullish On Long-Term Growth Prospects

Price Action: WMG shares are down 4.57% at $31.35 on the last check Thursday.