Shares of Warner Music Group (WMG) are moving lower the company said when reporting its fiscal Q4 report that its revenue growth was unfavorably impacted by the BMG Termination. Warner’s recorded music digital revenue growth was unfavorably impacted by the termination of the distribution agreement with BMG, which resulted in $25M less revenue compared to the prior-year quarter, the company said in its earnings releases. Chief Financial Officer said on theearnings call “Our physical distribution relationship with BMG has largely rolled off…We expect there to be an unfavorable revenue impact of $15 million to $20 million in Q1…Our digital distribution relationship with BMG that was planned to roll off by the end of fiscal ’24 will now continue into fiscal ’25.” Shares of Warner Music are down 8%, or $2.53, to $31.14 in afternoon trading.
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Read More on WMG:
- Warner Music board authorizes $100M share repurchase program
- Warner Music reports Q4 EPS 8c vs. 17c last year.
- WMG Upcoming Earnings Report: What to Expect?
- Warner Music price target lowered to $30 from $32 at Macquarie
- Warner Music downgraded to Underperform from Neutral at BofA
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