The Sound of Earnings: Warner Music’s Beat Steady Rhythms
On the financial stage, the revered Warner Music Group (NASDAQ: WMG) orchestra presented its third-quarter earnings serenade. The anticipated notes whispered predictions of 27 cents per share on $1.56 billion in revenue.
In sweet harmony, the results wove a pleasant tune with EPS meeting expectations at 27 cents, and revenue dancing slightly below at $1.55 billion. A harmonious echo from the year prior, where 27 cents harmonized with $1.56 billion, outplaying anticipated notes of 20 cents and $1.47 billion.
Within the melody, Warner’s recorded music segment faced a minor note with a 2.4% YoY dip to $1.25 billion. Yet, the music publishing melody rose by 7.8% YoY to $305 million. A 5% YoY digital chorus lifted revenue to $1.08 billion, benefiting from a crescendo in streaming.
Enriched with a 6.4% crescendo, adjusted OIBDA rose to $316 million, with a sparkling margin enhancement of 130 basis points to 20.3%. The maestro, Warner Music CEO Robert Kyncl, attributed this success to the symphony of content and favorable industry movements boosting subscription streaming.
Profound Crescendo: A Glimpse at the Future Symphony
Placing an ear to the future melody, analysts predict a harmonic rise in EPS to $1.33 by year-end, a 27% leap from last year’s $1.05. The revenue’s tune may dance to $6.44 billion, swaying to a 6.7% rise from the previous year’s $6.04 billion. Further, the grand theater of fiscal 2025 may witness a melodious expansion, with EPS crescendoing to $1.49 and revenue soaring to $6.75 billion.
Amidst this orchestral movement, the music industry’s global transition symphony resonates. MIDiA Research orchestrates a forecast of industry revenue crescendoing to $100 billion by the universal calendar’s 2031 date. This melodic journey is powered by the rising chorus of music platform subscribers, set to surpass one billion by the lyrical year of 2027.
Bringing a new timbre to this symphony, the music industry’s overture in the Global South is poised to elevate China to the second-largest recording market by 2031 according to MIDiA’s grand chorus.
Embracing the Melodic Investment Harmony: The MUSQ ETF
In an effort to harmonize with the forthcoming musical era, investors may take center stage with the MUSQ Global Music Industry ETF (NYSE: MUSQ). This exchange-traded fund orchestrates a medley of global music, offering investors a melodious exposure to WMG stocks comprising 2.43% of the fund’s ensemble.
The ETF ensemble extends beyond these notes, featuring Warner’s counterpart, Universal Music Group (OTC: UMGNF), and the fast-rising star, Tencent Music Entertainment Group (OTC: TME), enriched by China’s flourishing audio terrain. Additionally, MUSQ investors savor the essence of small-cap plays like Reservoir Media (NASDAQ: RSVR), an indie soul in the music realm.
A Melody of Charts: MUSQ’s Harmonious Performance
Amidst volatile market melodies, MUSQ undertook a symphonic passage as economic cadences reverberated. Yet, amidst this melodic journey, the thematic ETF positions itself at an appealing harmonic frequency.
- Resonating with a 1.4% rise during the midweek performance, MUSQ strives to crescendo past the psychological barrier at $23, a pivotal harmonic junction.
- Harmonizing towards the next movement, bulls seek to fortify the upper octave at $24.20, setting the stage for a symphonic march towards the $25 crescendo.
- WMG stocks and other melody makers ascend in the midweek medley, potentially lifting MUSQ to ride the harmonic winds.
Featured image by Bob McEvoy from Pixabay