Warner Music Group Corp. announced its financial results for the fourth quarter and full fiscal year ended September 30, 2024, on November 21, 2024. For Q4 FY24, total revenue increased 2.8% to $1.63 billion, or 2.9% in constant currency, surpassing analyst estimates of $1.59 billion.
Despite the revenue beat, GAAP earnings per share (EPS) for the quarter was $0.08, missing the analyst consensus estimate of $0.27. Net income decreased by $106 million to $48 million compared to the prior-year quarter.
Adjusted OIBDA for the fourth quarter increased 11.4% to $353 million, with the Adjusted OIBDA margin improving by 1.7 percentage points to 21.7%. This increase was primarily driven by strong operating performance and savings from the company's restructuring plans.
Recorded Music revenue grew 4.0% year-over-year to $1.34 billion, while Music Publishing revenue decreased 1.0% to $295 million. Digital revenue remained flat year-over-year at $1.07 billion, impacted by the termination of the BMG distribution agreement and a digital license renewal.
For the full fiscal year 2024, total revenue increased 6.4% to $6.43 billion, or 6.5% in constant currency. Adjusted OIBDA for the full year increased 16.0% to $1.432 billion, with the margin expanding by 1.8 percentage points to 22.3%.
Cash provided by operating activities for the quarter decreased 10% to $304 million, and Free Cash Flow decreased 10% to $271 million. The company's board of directors authorized a new $100 million share repurchase program, demonstrating confidence in the company's value.
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