Warner Music Ends Fiscal 2021 With In Line Quarter; Newer Platforms Boosting Streaming Growth

Warner Music posted an in line end to fiscal 2021, as live music began to return, lifting artist services revenue 71% on concert promotion and merchandising. We expect that vaccinations should help live music to return in more markets in the coming quarters, though the increasing spread of the delta variant may hinder that return. Even with live music bouncing back, streaming revenue continues to grow as WMG benefited from emerging platforms. We expect to increase our $33 fair value estimate to account for continued stronger-than-expected streaming growth even as consumers have ventured back out.