Warner Music reports a 33% annualised growth in its Q3 adjusted EBITDA

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Nov 23, 2020
  • Warner Music reports a 33% annualised growth in its Q3 adjusted EBITDA.
  • The American multinational says its annual net loss stood at £351.21 million.
  • Warner Music Group announced its quarterly cash dividend last week.

Warner Music Group Corp. (NASDAQ: WMG) reported its financial results on Monday that highlighted a 0.2% year over year growth in its fourth-quarter revenue. On a constant currency basis, total revenue was down by 1.1%.

Warner Music said that its net income in the fourth quarter printed at £750 thousand. In the same quarter last year, it had reported a much higher £68 million of net income. On an adjusted basis, its earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at £132.26 million in the recent quarter, or 33% higher than £99.38 million in the comparable quarter of last year.

Warner Music’s financial results for the full year

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The American multinational also published its financial results for the full year that concluded on 30th September. Total annual revenue, Warner Music said, saw a 0.3% annualised decline. On a constant currency basis, total annual revenue was up 0.4% on a year over year basis.

In the recently ended fiscal year, the entertainment and record label conglomerate posted £351.21 million of net loss versus the year-ago figure of £192.79 million of net income. On an adjusted basis, Warner Music’s full-year EBITDA registered a 14% annualised growth to £625.45 million. In the prior quarter, its adjusted EBITDA stood at £550.72 million.

Warner Music had its initial public offering (IPO) earlier this year. It debuted on the stock market in June at a per-share price of £22.51. Ahead of its IPO, Chinese multinational technology conglomerate, Tencent Holdings, invested £162 million in Warner Music in May.

Currently, shares of the Manhattan-based company are trading at £21.73, that represents a 3.5% decline since its IPO. The stock had tumbled to as low as £19.61 per share in the first week of November.

CFO Eric Levin’s comments on Monday

CFO Eric Levin commented on the earnings report on Monday and said:

“Our results are underpinned by the continued momentum we are seeing in streaming and the operating leverage driven by our digital transformation and business optimisation initiatives. As we look toward the future, we are confident in our long-term growth prospects, particularly as the areas of our business that have been most impacted by COVID-19 return to normal.”

Warner Music Group announced its quarterly cash dividend last week. At the time of writing, it has a market capitalisation of £11 billion.

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