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Mar 31, 2023

WMG Q2 2023 Earnings Report

Reported results for the fiscal second quarter, demonstrating underlying growth in recorded music streaming revenue and continued momentum in music publishing.

Key Takeaways

Warner Music Group Corp. reported a 2% increase in total revenue (5% in constant currency) for the quarter ended March 31, 2023. Digital revenue increased by 1% (4% in constant currency). Net income was $37 million, while Adjusted OIBDA increased by 4% to $286 million.

Total revenue increased 2% or 5% in constant currency.

Digital revenue increased 1% or 4% in constant currency.

Adjusted OIBDA increased 4% to $286 million versus $274 million in the prior-year quarter or 8% in constant currency.

Net income was $37 million versus $92 million in the prior-year quarter.

Total Revenue
$1.4B
Previous year: $1.38B
+1.7%
EPS
$0.2
Previous year: $0.22
-9.1%
Adjusted OIBDA
$286M
Previous year: $274M
+4.4%
Cash and Equivalents
$601M
Previous year: $385M
+56.1%
Free Cash Flow
-$41M
Previous year: $16M
-356.3%
Total Assets
$8.01B
Previous year: $7.78B
+2.9%

WMG

WMG

WMG Revenue by Segment

Forward Guidance

Company is optimistic about the second half of the year, with a more robust schedule that includes the return of worldwide superstars and new artists breaking globally. WMG is investing in the artists, songwriters, team, and technology that will deliver continued growth and long-term success.

Positive Outlook

  • Continued momentum in music publishing.
  • More robust release schedule expected.
  • Investment in tech-enabled strategy.
  • Focus on fiscal responsibility.
  • Commitment to A&R and marketing excellence.

Challenges Ahead

  • Macroeconomic headwinds.
  • Currency headwinds.
  • Release slate headwinds impacted revenue.
  • Operating income decreased primarily due to severance costs related to the restructuring plan.
  • OIBDA decreased primarily due to severance costs and executive transition costs.