Warner Music Group Corp. has declared a quarterly cash dividend of $0.17 per share on its Class A and Class B common stock, payable on March 1, 2024, to stockholders of record as of February 22, 2024.
Commenting on the announcement, the company's management emphasized the significance of the dividend declaration, stating, "We are pleased to continue returning value to our shareholders through the declaration of this quarterly dividend."
Furthermore, the company's shares experienced a 1.2% movement, reaching a trading price of $36.13.
Warner Music Group, with a legacy spanning over 200 years, is known for its extensive portfolio of creative artists, songwriters, and iconic record labels, such as Atlantic, Elektra, Parlophone, and Warner Records. Additionally, Warner Chappell Music, one of the world's leading music publishers, boasts a catalog of over one million copyrights across various musical genres.
For further details, the company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $4,005 | $4,475 | $4,463 | $5,301 | $5,919 | $6,037 |
| Revenue Growth | n/a | 11.74% | -0.27% | 18.78% | 11.66% | 1.99% |
| Operating Margins | 5% | 8% | -5% | 11% | 12% | 13% |
| Net Margins | 8% | 6% | -11% | 6% | 9% | 7% |
| Net Income (MM) | $307 | $256 | -$475 | $304 | $551 | $439 |
| Net Interest Expense (MM) | -$138 | -$142 | -$127 | -$122 | -$125 | $1 |
| Depreciation & Amort. (MM) | $261 | $269 | $261 | $306 | $339 | $332 |
| Earnings Per Share | $0.61 | $0.51 | -$0.93 | $2.75 | $4.12 | $3.18 |
| EPS Growth | n/a | -16.39% | -282.35% | 395.7% | 49.82% | -22.82% |
| Diluted Shares (MM) | 502 | 506 | 510 | 111 | 134 | 138 |
| Capital Expenditures (MM) | $74 | $104 | $57 | $93 | $135 | $127 |
| Current Ratio | 0.61 | 0.59 | 0.63 | 0.6 | 0.7 | 0.68 |
| Total Debt (MM) | $2,998 | $2,988 | $3,387 | $3,846 | $3,946 | $3,964 |
| Net Debt / EBITDA | 5.13 | 4.04 | 88.16 | 3.71 | 3.06 | 2.96 |
Warner Music has exceptional EPS growth obtained primarily through share buybacks, not enough current assets to cover current liabilities because its current ratio is 0.68, and a highly leveraged balance sheet. On the other hand, the company benefits from rapidly growing revenues and increasing reinvestment in the business and positive cash flows. Furthermore, Warner Music has weak operating margins with a positive growth rate.
