Overview
Warner Music Q4 revenue reaches all-time high, beating analyst expectations
Adjusted OIBDA for Q4 increased 15% year-over-year
Net income for Q4 rises to $109 mln from $48 mln in prior-year quarter
Outlook
Warner Music Group expects cost savings to improve margins by 150 to 200 basis points
Company anticipates sustained profitable growth in 2026
Result Drivers
RECORDED MUSIC GROWTH - Double-digit growth in Recorded Music driven by streaming and artist services
MARKET SHARE GAINS - Sequential acceleration in Recorded Music streaming growth due to market share gains
COST SAVINGS - Restructuring plans expected to contribute 150 to 200 basis points of margin improvement
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.87 bln
$1.68 bln (13 Analysts)
Q4 EPS
$0.21
Q4 Net Income
$109 mln
Q4 Free Cash Flow
$203 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the entertainment production peer group is "buy"
Wall Street's median 12-month price target for Warner Music Group Corp is $37.44, about 18.5% above its November 19 closing price of $30.50
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 23 three months ago
Press Release: ID:nBw6L81TGa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
