NEW YORK, Feb. 12, 2024 (GLOBE NEWSWIRE) -- Warner Music Group Corp. ("Warner Music Group" or "WMG") today announced that its Board of Directors declared a regular quarterly cash dividend of $0.17 per share on WMG's Class A Common Stock and Class B Common Stock. The dividend is payable on March 1, 2024, to stockholders of record as of the close of business on February 22, 2024. About Warner Music Group With a legacy extending back over 200 years, Warner Music Group today is home to an unparalleled family of ...

Financial Data and Key Metrics Changes - Total revenue increased by 16% year-over-year, with normalized revenue growth of 11% [18][69] - Adjusted OIBDA increased by 33%, with a margin of 25.8%, reflecting a 330 basis point improvement over the prior year [18][69] - Operating cash flow rose by 40% to $293 million, with free cash flow also increasing by 40% to $264 million [74] Business Line Data and Key Metrics Changes - Music publishing revenue grew by 20%, driven by a 30% increase in digital and streaming revenue [8][60] - Recorded music revenue grew by 15%, with normalized revenue growth of 9% [64][69] - Streaming revenue increased by 11.4% on a normalized basis, with subscription streaming revenue growing by 14% [64][69] Market Data and Key Metrics Changes - Ad-supported revenue increased by 10%, benefiting from the TikTok renewal [64][32] - Physical revenue rose by 13%, driven by strong releases in key markets [64] Company Strategy and Development Direction - The company announced a plan to achieve approximately $200 million in annualized cost savings by the end of September 2025, with most savings reinvested into core businesses [5][65] - The strategy focuses on enhancing engagement with music, increasing the value of music, and evolving internal collaboration [71][72] - The company is prioritizing investments in technology and artist development to drive sustainable growth [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the music industry's growth and the company's position within it, highlighting a strong release slate for Q2 [17][20] - The leadership team is focused on aligning incentives between streamers, labels, and artists to enhance overall industry growth [26][81] - Management acknowledged the challenges of navigating a complex and competitive market but remains confident in the company's strategic direction [70][72] Other Important Information - The company is exiting non-core media properties and reducing its workforce by approximately 10% to streamline operations [5][71] - A significant renewal with an international digital partner resulted in an upfront revenue recognition of $27 million [18] Q&A Session All Questions and Answers Question: What will the company do differently as a result of the new plan? - Management indicated that the new plan will focus on efficiency and operating leverage, allowing for more capital to be deployed in high-return opportunities [10][12] Question: How should success of the plan be measured? - Success will be measured by healthy top-line growth and margin expansion over time, with updates provided as progress is made [12] Question: Can you discuss the impact of the TikTok deal on growth? - The TikTok deal has contributed positively to ad-supported revenue growth, and management is confident in the terms of their agreement [32][115] Question: What are the expectations for recorded music ad-supported trends? - Management noted encouraging trends in ad-supported revenue growth, with expectations for continued improvement [141]

Warner Music Group Corp. (WMG) came out with quarterly earnings of $0.30 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -30.23%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.34, delivering a surprise of 36%.Over the last four quarters, the co ...

Warner Music Group Corp. is planning to lay off about 600 employees, or around 10% of its workforce, as part of a restructuring plan aimed at freeing up more cash to invest in music and boost growth. Warner WMG, -0.58% said in a filing late Wednesday that it expects the plan to generate a cost savings of about $200 million on an annualized basis by the end of fiscal 2025. The company joins Snapchat’s parent Snap Inc. SNAP, -34.61%, Wayfair Inc. W, -1.84%, and Okta Inc. OKTA, +2.08% in announcing recent work ...

ToplineWarner Music announced plans Wednesday to cut 600 employees in the record label conglomerate’s latest cost-cutting effort as the company seeks to sell off its entertainment portfolio, following a string of corporate layoffs in the tech industry.Warner Music is looking to sell entertainment sites Uproxx and HipHopDX. SOPA Images/LightRocket via Getty Images Key FactsWarner Music announced the layoffs in a Securities and Exchange Commission filing, with the majority coming from its corporate and media ...

Warner Music is laying off 600 employees, or about 10% of its workforce, according to a Wednesday filing.The company said the layoffs are part of a broader restructuring plan aimed at saving costs to invest in more music and "accelerate the company's growth for the next decade." The layoffs are expected to save the company $200 million by the end of fiscal 2025.The majority of the savings will be allocated toward increasing investment in Warner Music's core music units and new technologies.According to the ...

Financial Highlights Double-Digit Growth in Revenue and Adjusted OIBDA as both Recorded Music and Music Publishing Deliver Highest Quarterly Revenue in Company HistoryRecorded Music Results Bolstered by an Acceleration in Subscription and Ad-Supported StreamingMusic Publishing Momentum Continues with Fifth Consecutive Quarter of Increasing Revenue Growth Robust Operating Cash Flow Conversion of 65% of Adjusted OIBDALaunched Plan to Achieve $200 million in Annual Savings to be Reinvested into Growth Opportun ...

Financial Performance - Warner Music Group reported a significant increase in revenue for the fiscal quarter ended December 31, 2023, with total revenue reaching $1.5 billion, representing a 10% increase compared to the same period last year[115]. - Adjusted OIBDA for the quarter was $300 million, reflecting a 15% increase year-over-year, indicating strong operational performance[115]. - Total revenues increased by $260 million, or 17%, to $1,748 million for the three months ended December 31, 2023, compared to $1,488 million for the same period in 2022[135]. - Net income increased by $69 million, or 56%, to $193 million, reflecting strong operating performance and cost management[162]. - Adjusted OIBDA increased by $116 million, or 35%, to $451 million, with an Adjusted OIBDA margin of 26% for the three months ended December 31, 2023[152]. - Adjusted EBITDA for the twelve months ended December 31, 2023, was $1,416 million, an increase from $1,162 million in 2022, representing a growth of 21.9%[209]. - Net income for the twelve months ended December 31, 2023, was $508 million, compared to $491 million in 2022, reflecting a year-over-year increase of 3.5%[209]. Revenue Breakdown - The company experienced a 20% growth in streaming revenue, driven by increased adoption of digital music services and a broader catalog of artists[115]. - Warner Music Group's international operations contributed approximately 60% of total revenue, highlighting the importance of global markets in its business strategy[118]. - Digital revenues rose by $152 million, or 16%, to $1,104 million for the three months ended December 31, 2023, from $952 million in the prior year[137]. - Recorded Music revenues increased by $206 million, or 17%, to $1,445 million for the three months ended December 31, 2023, compared to $1,239 million for the same period in 2022[138]. - Music Publishing revenues increased by $54 million, or 22%, to $304 million for the three months ended December 31, 2023, from $250 million in the prior year[140]. - U.S. Recorded Music revenues were $627 million, representing 43% of consolidated Recorded Music revenues for the three months ended December 31, 2023[138]. - International revenue increased by $133 million, or 16%, to $950 million for the same period, with digital revenue contributing $90 million to this growth[143]. Cost Management - The company is committed to reducing overhead costs, with an ongoing initiative expected to yield annual savings of approximately $50 million[115]. - The restructuring plan announced in March 2023 is expected to generate pre-tax cost savings of approximately $12 million for the three months ended December 31, 2023[131]. - Total cost of revenues increased by $119 million, or 16%, to $880 million, with artist and repertoire costs rising by $76 million to $540 million[144]. - Selling, general and administrative expenses for Recorded Music rose by $16 million, or 5%, to $364 million, with general and administrative expenses increasing by 23%[169][170]. Strategic Initiatives - The company is focusing on expanding its digital distribution channels, aiming to enhance monetization opportunities in the evolving music entertainment landscape[107]. - Warner Music Group plans to invest in new artist development initiatives, with a budget increase of 25% for talent acquisition and marketing efforts in 2024[115]. - The company is actively pursuing strategic acquisitions to enhance its catalog and market presence, with a target of completing at least two acquisitions in the next fiscal year[115]. - Warner Music Group is focused on enhancing its technology capabilities, investing in new digital tools to improve artist engagement and fan interaction[115]. Cash Flow and Financing - Cash provided by operating activities was $293 million for the three months ended December 31, 2023, an increase of $84 million compared to $209 million for the same period in 2022[186]. - Cash used in investing activities was $92 million for the three months ended December 31, 2023, compared to $10 million for the same period in 2022, with significant investments in music-related assets totaling $59 million[187]. - Cash used in financing activities was $93 million for the three months ended December 31, 2023, an increase from $70 million in the prior year, primarily due to dividends paid of $89 million[188]. - The company expects annualized run-rate savings from its financial transformation initiative to be between $35 million and $40 million once fully implemented, with upfront costs estimated at approximately $250 million[191]. - The company's long-term debt as of December 31, 2023, totaled $4,041 million, with a weighted-average interest rate decreasing from 10.5% in 2011 to 4.6%[192][198]. Market Outlook - The company anticipates continued growth in the music entertainment industry, projecting a 5% increase in overall market size over the next year[107]. - The company expects to fund its debt service, working capital, and capital expenditure requirements through operations and available cash[213].

NEW YORK, Feb. 2, 2024 /PRNewswire/ -- Today, Megan Thee Stallion and Warner Music Group (Nasdaq: WMG) announced an innovative agreement that will enable the Houston native to maintain her independence as a musician while also having access to the music company's robust global services, ranging from radio promotion to marketing worldwide. L-R: Rayna Bass (Co-President, 300 Entertainment), Desiree Perez (CEO, Roc Nation), Megan Thee Stallion, Max Lousada (CEO, Recorded Music, WMG) Through the unique stru ...

Warner Music Group Corp. (WMG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 8, 2024, might help the stock move higher if these key numbers ar ...