Warner Music Group Corp. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Warner Music Group Corp. filed its Q1 2024 10-Q, detailing financial performance and operational data.</b>

AI Summary

Warner Music Group Corp. (WMG) filed a Quarterly Report (10-Q) with the SEC on February 8, 2024. Warner Music Group Corp. filed a 10-Q report for the period ending December 31, 2023. The filing covers the first quarter of fiscal year 2024. Depreciation expense for the three months ended December 31, 2023, was $(26). Depreciation expense for the three months ended December 31, 2022, was $(21). The company's fiscal year ends on September 30.

Why It Matters

For investors and stakeholders tracking Warner Music Group Corp., this filing contains several important signals. This filing provides investors with an updated view of WMG's financial health and operational performance for the most recent quarter. Key financial figures and disclosures in this 10-Q will inform investment decisions and analyst ratings.

Risk Assessment

Risk Level: low — Warner Music Group Corp. shows low risk based on this filing. The filing is a routine quarterly report (10-Q) and does not contain significant new risks or material changes in the company's risk profile.

Analyst Insight

Monitor WMG's subsequent filings for detailed financial results and management commentary on performance drivers and outlook.

Key Numbers

• 2023-12-31 — Period End Date (Quarterly report)
• 2024-02-08 — Filing Date (10-Q filing)
• 2024 Q1 — Fiscal Quarter (Reporting period)
• $(26) — Depreciation Expense (Q1 2024) (Three months ended December 31, 2023)
• $(21) — Depreciation Expense (Q1 2023) (Three months ended December 31, 2022)
• 0930 — Fiscal Year End (Company fiscal calendar)

Key Players & Entities

• Warner Music Group Corp. (company) — Filer
• WMG (company) — Former company name
• 2023-12-31 (date) — Period of report
• 2024-02-08 (date) — Filing date
• 2024 Q1 (date) — Fiscal quarter
• 10-Q (document) — Form type
• 001-32502 (document) — SEC file number
• 212-275-2000 (phone) — Business phone

Forward-Looking Statements

• The increase in depreciation expense will likely lead to a slight decrease in reported net income for Q1 2024 compared to what it would have been without the increase. (Warner Music Group Corp.) — high confidence, target: Q1 2024 earnings report

FAQ

Industry Context

Warner Music Group operates in the music industry, which is characterized by digital transformation, evolving consumption patterns, and global artist development.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial reports to the SEC.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management's discussion and analysis.
2. Compare WMG's Q1 2024 performance against prior periods and industry benchmarks.
3. Analyze any disclosed risk factors or legal proceedings for potential impacts on WMG's operations.

Key Dates

• 2023-12-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-02-08: Filing Date — Date Warner Music Group Corp. submitted its 10-Q filing.

Year-Over-Year Comparison

This is the 10-Q filing for the quarter ended December 31, 2023, providing updated financial information since the previous quarterly report.

Key Financial Figures

• $0.001 — which registered Class A Common Stock, $0.001 par value per share WMG The Nasdaq Stoc

Filing Documents

• wmg-20231231.htm (10-Q) — 1239KB
• ex102formofawardagreementu.htm (EX-10.2) — 209KB
• ex103wmg-thirteenthamendme.htm (EX-10.3) — 1880KB
• q12024ex311.htm (EX-31.1) — 9KB
• q12024ex312.htm (EX-31.2) — 9KB
• q12024ex321.htm (EX-32.1) — 4KB
• q12024ex322.htm (EX-32.2) — 4KB
• 0001319161-24-000010.txt (&nbsp;) — 8908KB
• wmg-20231231.xsd (EX-101.SCH) — 44KB
• wmg-20231231_cal.xml (EX-101.CAL) — 63KB
• wmg-20231231_def.xml (EX-101.DEF) — 274KB
• wmg-20231231_lab.xml (EX-101.LAB) — 544KB
• wmg-20231231_pre.xml (EX-101.PRE) — 379KB
• wmg-20231231_htm.xml (XML) — 892KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets as of December 31, 2023 and September 30, 2023 1 Condensed Consolidated Statements of Operations for the Three Months Ended December 31, 2023 and December 31, 2022 2 Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended December 31, 2023 and December 31, 2022 3 Condensed Consolidated Statements of Cash Flows for the Three Months Ended December 31, 2023 and December 31, 2022 4 Condensed Consolidated Statements of Equity for the Three Months Ended December 31, 2023 and December 31, 2022 5 Notes to Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 43 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults Upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 44 Item 6. Exhibits 45

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Warner Music Group Corp. Condensed Consolidated Balance Sheets (In millions, except share amounts which are reflected in thousands) (Unaudited) December 31, 2023 September 30, 2023 Assets Current assets: Cash and equivalents $ 754 $ 641 Accounts receivable, net of allowances of $ 19 million and $ 19 million 1,195 1,120 Inventories 106 126 Royalty advances expected to be recouped within one year 453 413 Prepaid and other current assets 108 102 Total current assets 2,616 2,402 Royalty advances expected to be recouped after one year 755 688 Property, plant and equipment, net of accumulated depreciation of $ 551 million and $ 523 million 466 458 Operating lease right-of-use assets, net 242 245 Goodwill 2,015 1,993 Intangible assets subject to amortization, net 2,390 2,353 Intangible assets not subject to amortization 151 149 Deferred tax assets, net 31 32 Other assets 325 225 Total assets $ 8,991 $ 8,545 Liabilities and Equity Current liabilities: Accounts payable $ 246 $ 300 Accrued royalties 2,460 2,219 Accrued liabilities 538 533 Accrued interest 29 18 Operating lease liabilities, current 43 41 Deferred revenue 305 371 Other current liabilities 124 57 Total current liabilities 3,745 3,539 Long-term debt 4,004 3,964 Operating lease liabilities, noncurrent 249 255 Deferred tax liabilities, net 223 216 Other noncurrent liabilities 154 141 Total liabilities $ 8,375 $ 8,115 Equity: Class A common stock, $ 0.001 par value; 1,000,000 shares authorized, 140,637 and 138,345 shares issued and outstanding as of December 31, 2023 and September 30, 2023, respectively $ — $ — Class B common stock, $ 0.001 par value; 1,000,000 shares authorized, 377,103 and 377,650 issued and outstanding as of December 31, 2023 and September 30, 2023, respectively 1 1 Additional paid-in capital 2,039 2,015 Accumulated deficit ( 1,317 ) ( 1,387 ) Accumulated other comprehensive loss, net ( 260 ) ( 322 ) Total Warner Music

View Full Filing

View this 10-Q filing on SEC EDGAR