Shares of Warner Music Group Corp. (WMG) surged 2.6% towards a nine-month high following their impressive fiscal fourth-quarter earnings results. The music recorder and publisher reported a net income of $152 million, or 29 cents per share, for the quarter ending on September 30th. This marked an increase from $148 million, or 28 cents per share, in the same period last year.
Warner Music Group’s revenue also experienced a growth of 5.9% to $1.59 billion, surpassing the FactSet consensus of $1.57 billion. These positive results were attributed to a “solid” release slate and the strong growth in recorded music streaming.
Recorded Music revenue rose 3.8% to $1.29 billion, driven by a 9.6% increase in streaming revenue. Additionally, Music Publishing revenue saw a significant jump of 17.3% to $298 million, with streaming revenue increasing by 28.4%.
While Warner Music Group’s stock had experienced a slight decline of 2.3% over the past three months, it is clear that their recent financial success is positively impacting their market standing. In comparison, the S&P 500 had gained 2.2% during the same period.
These impressive earnings results demonstrate Warner Music Group’s ability to adapt to the evolving music industry landscape, particularly with the significant growth in recorded music streaming revenue. As Warner Music Group continues to thrive within the industry, investors eagerly await future developments and potential growth opportunities.