Warner Music Profit Misses Estimate; Revenue Beats

Warner Music broke even in its fiscal fourth quarter as music streaming stayed strong and other revenue sources ramped up.
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Warner Music Group  (WMG) - Get Report reported a break-even fiscal fourth quarter that missed analyst estimates as revenue edged higher. 

For the quarter ended Sept. 30 the New York company reported net income of $1 million in the quarter, or break-even per share, down from $91 million, or 18 cents, in the year-earlier period. 

Analysts surveyed by FactSet were expecting a profit of a nickel a share for the latest quarter. 

Revenue for the period rose 0.2% to $1.13 billion, above the FactSet consensus estimate of $1.11 billion. 

"Our streaming growth has stayed strong, and we've also seen an acceleration in a whole spectrum of emerging revenue streams such as social media, gaming, and in-home fitness," Chief Executive Steve Cooper said in a statement. 

Warner Music reported digital revenue growth across its recorded music and music publishing businesses, offset partly by a decline in recorded music artist services (concerts) and expanded-rights and licensing.

The company sees "continued momentum ... in streaming and the operating leverage driven by our digital transformation and business optimization initiatives," Chief Financial Officer Eric Levin said. 

Warner Music is "confident in our long-term growth prospects, particularly as the areas of our business that have been most impacted by Covid return to normal."

Warner Music shares at last check were little changed at $29.12.