Warner Music Group (NASDAQ:WMG) posts strong earnings despite revenue dip in Q3

Warner Music Group Corp. (NASDAQ:WMG) today announced its financial results for the third quarter of the fiscal year ended June 30, 2024.

The company reported a slight decline in total revenue by 1%.

Despite the revenue drop, Warner Music's net income surged by 14%, reaching $141 million.

This increase is part of a broader positive trend, as operating income also rose by 10% to $207 million, up from $189 million in the same quarter last year.

Furthermore, the company's adjusted Operating Income Before Depreciation and Amortization (OIBDA) climbed 6% to $316 million, compared to $297 million in the prior-year quarter.

When adjusted for constant currency fluctuations, this growth rate expands to 8%.

Cash flow from operations was another strong area, with a 29% increase to $188 million, up from $146 million in the prior-year quarter.

This robust performance supports the company's reiteration of its full-year operating cash flow conversion guidance, which remains set at 50-60%.