Warner Music Group Corp Ordinary Shares - Class A
WMG: XNAS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $63.00 | Tcyljtw | Cfstwjps |
Warner Music Earnings: Weak Streaming Growth Weighs on Results and Shares
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Warner Music posted better-than-expected fiscal second-quarter results as revenue was in line and adjusted EBITDA was ahead of FactSet consensus. However, shares fell by over 9.5% as streaming growth decelerated at the recorded music segment. Quarterly results also suffered from the impact of economic uncertainty on ad revenue and ongoing financial currency headwinds. Despite muted growth in recorded music, we still expect the firm to benefit from deals with newer emerging platforms and price hikes at larger music streaming services. We maintain our $36 fair value estimate.