Warner Music Reports Strong Q3; Streaming Consumption Growth Continues to Drive Outperformance

Warner Music posted another strong quarter as fiscal third-quarter revenue and EBITDA handily beat FactSet consensus estimates. Revenue growth was once again driven by increased consumption on both traditional streaming platforms and emerging ones like in-home fitness and live streaming. With the beginnings of a return to live music, artist services revenue was up 7% with direct-to-consumer merchandising adding to the growth. We expect vaccinations should help live music return in more markets during the second half of the year though the increasing spread of the Delta variant may hinder that return.