Warner Music Group Q3 2024 Update

TL;DR

WMG Q3 2024: Depreciation $25M for Qtr, $77M YTD. Financials out.

AI Summary

Warner Music Group Corp. filed its 10-Q for the period ending June 30, 2024. The filing includes financial data for the third quarter and the first nine months of the fiscal year. Depreciation expense for the three months ended June 30, 2024, was $(25) million, and for the nine months ended June 30, 2024, it was $(77) million.

Why It Matters

This filing provides insight into Warner Music Group's financial performance and operational costs during the third quarter of fiscal year 2024, impacting investor understanding of the company's stability and profitability.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative events indicated.

Key Numbers

• $25M — Depreciation Expense (Q3 2024) (Cost incurred during the three months ended June 30, 2024.)
• $77M — Depreciation Expense (Nine Months 2024) (Cost incurred during the nine months ended June 30, 2024.)

Key Players & Entities

• Warner Music Group Corp. (company) — Filer of the 10-Q
• June 30, 2024 (date) — End of reporting period
• $25 million (dollar_amount) — Depreciation expense for Q3 2024
• $77 million (dollar_amount) — Depreciation expense for nine months ended Q3 2024

FAQ

Key Financial Figures

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

Filing Documents

• wmg-20240630.htm (10-Q) — 1737KB
• q32024ex311.htm (EX-31.1) — 9KB
• q32024ex312.htm (EX-31.2) — 9KB
• q32024ex321.htm (EX-32.1) — 4KB
• q32024ex322.htm (EX-32.2) — 4KB
• 0001319161-24-000027.txt ( ) — 7483KB
• wmg-20240630.xsd (EX-101.SCH) — 47KB
• wmg-20240630_cal.xml (EX-101.CAL) — 66KB
• wmg-20240630_def.xml (EX-101.DEF) — 311KB
• wmg-20240630_lab.xml (EX-101.LAB) — 516KB
• wmg-20240630_pre.xml (EX-101.PRE) — 394KB
• wmg-20240630_htm.xml (XML) — 1028KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets as of June 3 0 , 2024 and September 30, 2023 1 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended June 3 0 , 2024 and June 3 0 , 202 3 2 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended June 3 0 , 2024 and June 3 0 , 202 3 3 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended June 3 0 , 2024 and June 3 0 , 202 3 4 Condensed Consolidated Statements of Equity for the Three and Nine Months Ended June 3 0 , 2024 and June 3 0 , 202 3 5 Notes to Condensed Consolidated Financial Statements 7 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 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 54 Item 4.

Controls and Procedures

Controls and Procedures 55 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 57 Item 1A.

Risk Factors

Risk Factors 57 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 57 Item 3. Defaults Upon Senior Securities 57 Item 4. Mine Safety Disclosures 57 Item 5. Other Information 57 Item 6. Exhibits 58

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) June 30, 2024 September 30, 2023 Assets Current assets: Cash and equivalents $ 607 $ 641 Accounts receivable, net of allowances of $ 23 million and $ 19 million 1,222 1,120 Inventories 92 126 Royalty advances expected to be recouped within one year 450 413 Prepaid and other current assets 112 102 Total current assets 2,483 2,402 Royalty advances expected to be recouped after one year 837 688 Property, plant and equipment, net of accumulated depreciation of $ 594 million and $ 523 million 464 458 Operating lease right-of-use assets, net 226 245 Goodwill 2,003 1,993 Intangible assets subject to amortization, net 2,309 2,353 Intangible assets not subject to amortization 150 149 Deferred tax assets, net 29 32 Other assets 329 225 Total assets $ 8,830 $ 8,545 Liabilities and Equity Current liabilities: Accounts payable $ 200 $ 300 Accrued royalties 2,582 2,219 Accrued liabilities 499 533 Accrued interest 29 18 Operating lease liabilities, current 43 41 Deferred revenue 168 371 Other current liabilities 52 57 Total current liabilities 3,573 3,539 Long-term debt 3,978 3,964 Operating lease liabilities, noncurrent 232 255 Deferred tax liabilities, net 251 216 Other noncurrent liabilities 161 141 Total liabilities $ 8,195 $ 8,115 Equity: Class A common stock, $ 0.001 par value; 1,000,000 shares authorized, 141,603 and 138,345 shares issued and outstanding as of June 30, 2024 and September 30, 2023, respectively $ — $ — Class B common stock, $ 0.001 par value; 1,000,000 shares authorized, 376,315 and 377,650 issued and outstanding as of June 30, 2024 and September 30, 2023, respectively 1 1 Additional paid-in capital 2,053 2,015 Accumulated deficit ( 1,260 ) ( 1,387 ) Accumulated other comprehensive loss, net ( 311 ) ( 322 ) Total Warner Music Group Corp. e

View Full Filing

View this 10-Q filing on SEC EDGAR