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Earnings transcript
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WMG
Warner Music Group Corp.
$29.36
-0.65
(-2.17%)
| Exchange: | NASDAQ |
| Market Cap: | 15.322B |
| Shares Outstanding: | 1.004B |
Delayed data
About The Company
| Sector: | Communication Services | |||||
| Industry: | Entertainment | |||||
| CEO: | Robert Kyncl | |||||
| Full Time Employees: | 5800 | |||||
| Address: |
| |||||
| Website: | https://www.wmg.com |
Warner Music Group Corp. (WMG), established in 1929 and based in New York City, functions as a prominent global entertainment enterprise primarily focused on music. Its operations span the United States, the United Kingdom, Germany, and numerous other international markets. The company’s activities are organized into two distinct divisions: Recorded Music and Music Publishing. The Recorded Music division is dedicated to identifying and cultivating emerging musical talent. It handles the subsequent marketing, promotional campaigns, distribution logistics, sales, and licensing of the recordings produced by these artists. This segment also actively markets its vast catalog of existing music, issuing compilations, re-releases of classic tracks and videos, and previously unreleased material. Its operations are chiefly conducted through a diverse portfolio of renowned record labels, including but not limited to Warner Records, Atlantic Records, Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin’ Records, Warner Classics, and Warner Music Nashville. Music and video products are distributed and sold by this division to a wide array of channels, encompassing direct retailers, wholesale distributors, independent labels, various distribution centers and joint ventures, physical retail locations, online stores, streaming platforms, and digital download services. The Music Publishing division is responsible for owning and acquiring the intellectual property rights to approximately one million musical compositions. This extensive collection includes iconic pop hits, American classics, folk melodies, and scores for motion pictures and theatrical productions. Its comprehensive catalog represents the work of roughly 100,000 songwriters and composers, covering an expansive spectrum of musical styles such as pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, electronic, alternative, and gospel. Furthermore, this segment provides administrative services for the musical scores and soundtracks associated with various external television and film production companies and studios.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 6,037,000 | 6,426,000 | 6,707,000 |
| Gross Profit | 2,860,000 | 3,071,000 | 3,075,000 |
| EBITDA | 1,082,000 | 1,089,000 | 1,114,000 |
| Operating Income | 790,000 | 823,000 | 694,000 |
| Net Income | 430,000 | 435,000 | 365,000 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 8,545,000 | 9,155,000 | 9,829,000 |
| Total Liabilities | 8,115,000 | 8,480,000 | 9,072,000 |
| Total Stockholders Equity | 307,000 | 518,000 | 647,000 |
| Total Debt | 4,260,000 | 4,287,000 | 4,608,000 |
| Cash and Cash Equivalents | 641,000 | 694,000 | 532,000 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 687,000 | 754,000 | 678,000 |
| Capital Expenditure | -241,000 | -116,000 | -139,000 |
| Free Cash Flow | 446,000 | 638,000 | 539,000 |
| Net Income | 439,000 | 478,000 | 365,000 |
| Net Change in Cash | 57,000 | 53,000 | -162,000 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 8,989,946.908 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 9,417,775.798 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 9,185,000 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 1,591,157.191 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 1,666,879.887 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 1,625,680.212 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 1,266,844.716 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 1,345,729.573 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 1,302,809.526 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 2,600,583.042 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 2,724,344.013 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 2,657,007.375 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 2.510 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 2.590 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 2.440 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 6 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 4 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Robust Revenue Growth: WMG reported a 41% growth in total revenue for Q1 2024, as highlighted in the earnings call transcript, driven by strong performance in digital streaming and recorded music segments. This growth outpaces many peers in the entertainment and music industry, reflecting effective market positioning.
- Operational Efficiency: Key metrics such as gross profit margin (TTM) and net profit margin (TTM) indicate solid profitability, supported by consistent operating cash flow and free cash flow trends from cash flow statements. This suggests WMG's ability to manage costs while scaling revenue.
- Strong Market Presence: As a leading player in the music industry within the broader entertainment sector (per company profile and sector data), WMG benefits from a diversified portfolio of artists and content, enhancing its competitive edge in a growing digital music market.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates WMG intrinsic value between $9.07 – $56.80 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
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Common questions about WMG valuation
Is Warner Music Group Corp. (WMG) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for Warner Music Group Corp. (WMG) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is WMG a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether WMG trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is WMG’s P/E ratio?
You can see WMG’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for WMG?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is WMG a good long-term investment?
Whether WMG fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
WMG
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Daily snapshot
-2.17
Trading Metrics:
| Open: | 30.19 | Previous Close: | 30.01 | |
| Day Low: | 29.03 | Day High: | 30.19 | |
| Year Low: | 23.34 | Year High: | 35.42 | |
| Price Avg 50: | 29.99 | Price Avg 200: | 30.24 | |
| Volume: | 1.696M | Average Volume: | 2.506M |
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Login — it's freeWMG full analysis
Welcome to MARKETSNAP’s SWOT analysis for Warner Music Group, or WMG as you might know it on the ticker. Today, we’re diving deep into this major player in the entertainment world, breaking down what makes them tick, where they’re vulnerable, and what could shape their future. If you’re a long-term investor looking to build wealth, stick around because we’ve got insights that could help you decide if Warner Music Group deserves a spot in your portfolio. Let’s get started! Quick…
