Warner Music Group Corp Ordinary Shares - Class A

WMG: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$31.00	Hyskdth	Sndghszd

Warner Music Earnings: Encouraging Profit Growth and no Mention of Industry Headwinds

Matthew Dolgin

Aug 8, 2024

Warner Music's fiscal third-quarter revenue growth was fairly weak, but, unlike peer Universal, critically important subscription streaming revenue growth remained high. Results also showed the fruits of the firm's cost restructuring plan, as growth in profits and free cash flow far outpaced sales. With no change to our bullish long-term outlook for the music industry, we're maintaining our $37 fair value estimate and think the stock remains undervalued.

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