Warner Music Group Corp. reported second-quarter FY22 revenue growth of 10 percent year-on-year to $1.376 billion, missing the consensus of $1.38 billion.
Recorded Music revenue grew 8 percent Y/Y to $1.15 billion. Music Publishing increased 20 percent Y/Y to $230 million, and Digital grew 8 percent Y/Y to $931 billion.
Adjusted OIBDA margin decreased 50 bps to 19.9 percent due to revenue mix and growth of lower-margin revenue streams.
Adjusted EBITDA margin decreased 90 bps to 20.5 percent.
EPS was $0.18, down from $0.22 last year.
Warner Music generated $44 million (-77 percent Y/Y) in operating cash flow and held $385 million in cash and equivalents. Free cash flow fell 88 percent Y/Y for $16 million.
CFO Eric Levin said, “While our core business continues to flourish, new growth vectors are constantly emerging.”
