Warner Music Group (WMG) Q4 FY2023 earnings: revenue $1.6 billion, up 5.9% on the year

Warner Music Group Corp. (WMG) reported revenue of $1.6 billion for Q4 FY2023, the quarter ended 30 September 2023, up 5.9% on the same quarter a year earlier. Net income was $152 million, up 2.7% on the year, and diluted earnings per share $0.29. The figures are the company's own, from the 10-K it filed with the SEC on 21 November 2023.

Revenue$1.6 billionup 5.9%

Net income$152 millionup 2.7%

Diluted EPS$0.29

QuarterQ4 FY2023ended 30 September 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Quarter before	A year earlier	Change on the year
Revenue	1,586	n/a	n/a	n/a
Cost of revenue	845	n/a	n/a	n/a
Gross profit	741	n/a	n/a	n/a
Gross margin	46.7%	n/a	n/a
Selling, general and administrative	473	n/a	n/a	n/a
Operating income	212	n/a	n/a	n/a
Operating margin	13.4%	n/a	n/a
Interest expense	42.0	n/a	n/a	n/a
Pre-tax income	212	n/a	n/a	n/a
Income tax	58.0	n/a	n/a	n/a
Effective tax rate	27.4%	n/a	n/a
Net income	152	n/a	n/a	n/a
Net margin	9.6%	n/a	n/a
Diluted EPS	$0.29	n/a	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2023	Quarter before	A year earlier	Change on the year
Operating cash flow	338	n/a	n/a	n/a
Capital expenditure	38.0	n/a	n/a	n/a
Free cash flow	300	n/a	n/a	n/a
Free cash flow margin	18.9%	n/a	n/a
Cash from investing	-196	n/a	n/a	n/a
Cash from financing	-92.0	n/a	n/a	n/a
Depreciation and amortisation	79.0	n/a	n/a	n/a
Dividends paid	89.0	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Quarter before	A year earlier	Change on the year
Shareholders' equity	307	n/a	n/a	n/a
Non-controlling interest	123	n/a	n/a	n/a
Debt	3,964	n/a	n/a	n/a
Operating lease liabilities	255	n/a	n/a	n/a
Other liabilities	3,896	n/a	n/a	n/a
Total liabilities and equity	8,545	n/a	n/a	n/a
Fixed assets	458	n/a	n/a	n/a
Goodwill	1,993	n/a	n/a	n/a
Intangible assets	2,502	n/a	n/a	n/a
Cash and equivalents	641	n/a	n/a	n/a
Receivables	1,120	n/a	n/a	n/a
Inventory	126	n/a	n/a	n/a
Other assets	1,705	n/a	n/a	n/a
Total assets	8,545	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,586	1,748	1,494	1,554	1,630	1,666	1,484	1,689	1,868	1,840	1,732	1,864
Cost of revenue	845	880	791	830	854	894	791	913	1,034	987	930	1,010
Gross profit	741	868	703	724	776	772	693	776	834	853	802	854
Gross margin	47%	50%	47%	47%	48%	46%	47%	46%	45%	46%	46%	46%
SG&A	473	476	446	462	495	474	450	471	494	458	460	464
Operating income	212	354	119	207	143	214	168	169	143	288	264	305
Operating margin	13%	20%	8%	13%	9%	13%	11%	10%	8%	16%	15%	16%
Interest expense	42.0	45.0	46.0	46.0	45.0	43.0	44.0	45.0	45.0	46.0	44.0	46.0
Pre-tax income	212	265	114	171	51.0	330	65.0	-11.0	106	246	254	267
Tax rate	27%	27%	16%	18%	6%	27%	45%	n/a	-3%	29%	29%	25%
Net income	152	159	96.0	139	41.0	236	36.0	-16.0	109	176	183	204
Net margin	10%	9%	6%	9%	3%	14%	2%	-1%	6%	10%	11%	11%
Diluted EPS	$0.29	$0.30	$0.18	$0.27	$0.08	$0.45	$0.07	-$0.03	$0.21	$0.33	$0.34	$0.38
Operating cash flow	338	293	-31.0	188	304	332	69.0	46.0	231	440	126	142
Capital expenditure	38.0	29.0	26.0	28.0	33.0	36.0	36.0	39.0	28.0	20.0	27.0	28.0
Free cash flow	300	264	-57.0	160	271	296	33.0	7.0	203	420	99.0	114
Buybacks	n/a	0.0	0.0	0.0	0.0	2.0	0.0	1.0	13.0	26.0	22.0	0.0
Dividends paid	89.0	89.0	89.0	89.0	94.0	94.0	95.0	94.0	100	100	100	100
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 30 September 2023, filed 21 November 2023, accession 0001319161-23-000036: the filing on EDGAR. All of Warner Music Group Corp.'s filings: EDGAR company page.

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