Warner Music Group Corp (NASDAQ:WMG) stock rose 2.55% (As on November 22, 12:03:46 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that missed analyst expectations. Digital revenue decreased 0.2% (or increased 0.2% in constant currency) and streaming revenue increased 1.0% (or 1.3% in constant currency). Recorded Music streaming revenue increased 2.1% (or 2.5% in constant currency); however, adjusted for the impact of the BMG Termination of $24 million and the Digital License Renewal of $4 million. Operating income decreased to $143 million compared to $212 million in the prior-year quarter. Adjusted OIBDA increased 11.4% from $317 million to $353 million (the same in constant currency) and Adjusted OIBDA margin increased 1.7 percentage points to 21.7% from 20.0% in the prior-year quarter (the same in constant currency). The increases in Adjusted OIBDA and Adjusted OIBDA margin were driven primarily by strong operating performance and savings from the Company’s restructuring plans, of which a majority has been reinvested in the Company’s business. Net income decreased by $106 million to $48 million from $154 million in the prior-year quarter. As of September 30, 2024, the Company reported a cash balance of $694 million, total debt of $4.014 billion and net debt of $3.320 billion, compared to $3.323 billion at the end of the prior year. Cash provided by operating activities decreased 10% to $304 million from $338 million in the prior-year quarter. The company delivered operating cash flow conversion of 53% in line with guidance. The company continued strong growth in subscription streaming underpinned by healthy macro trends. The company continues to evolve WMG, which is enhancing the ability to attract original artists and songwriters at all stages of their careers, helping them realize their musical visions, and grow passionate, loyal fanbases.

WMG in the fourth quarter of FY 24 has reported the adjusted earnings per share of 8 cents, missing the analysts’ estimates for the adjusted earnings per share of 28 cents. The company had reported the adjusted revenue growth of 2.8 percent to $1.63 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $1.59 billion. Recorded Music digital revenue growth was unfavorably impacted by the termination of the distribution agreement with BMG (the “BMG Termination”), which resulted in $25 million less revenue compared to the prior-year quarter, and a renewal with one of the Company’s digital partners (the “Digital License Renewal”), which resulted in a $4 million unfavorable impact within Recorded Music streaming revenue compared to the prior-year quarter.