Warner Music Group Corp.


SKU: WMG Category:


This is our first report on Warner Music Group, one of the largest music entertainment companies across the globe. Despite the numerous macro challenges, Warner Music achieved double-digit growth for the fourth quarter and the entire year and managed to surpass Wall Street expectations on all counts. The company has delivered well in several important metrics, such as total revenue, and operating cash flow. Revenue from extended rights and artist services increased by 33% due to merchandise sales and concert marketing. Physical revenue also grew by 6%, mostly due to stronger performance in Japan and higher final product sales. With a 32% gain, music publishing has maintained its remarkable performance. Indicative of strong momentum in streaming, which increased by 37%, digital revenue surged by 39%. Besides, downloads and other digital earnings from the Copyright Settlement total $7 million in digital revenue. Digital revenue grew by 33% when this benefit was excluded. During the quarter, they signed breakout punk rock band The Linda Lindas and top sensation Lauren Spencer-Smith. Warner also extended its contract with Chris Stapleton and renewed its Chinese social media platform license. We initiate coverage on the stock of Warner Music Group Corp. with a ‘Hold’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

Want unlimited access to our reports? Purchase our $99 annual subscription!