Topic: How To Invest

Power Growth Investor Hotline – Friday, May 20, 2022

Article Excerpt

WARNER MUSIC GROUP CORP., $29.76, is a buy. The company’s shares (symbol WMG on New York) began trading on June 3, 2020, following an IPO. Warner Music is one of the world’s leading music entertainment companies. Its record labels include Atlantic Records, Warner Records, and Elektra Records. Musicians recording on these labels include Bruno Mars, Lizzo, Ed Sheeran, Cardi B, Katy Perry, Madonna, Metallica, Neil Young and Led Zeppelin. The company also owns Warner Chappell Music, a music publishing company representing more than 80,000 songwriters and composers. In the three months ended March 31, 2022, Warner Music’s revenue rose 10.1%, to $1.38 billion from $1.25 billion a year earlier. Music publishing sales rose 19.8% to $230 million. Recorded music sales rose 8.3%, to $1.15 billion from $1.06 billion. Digital sales of recorded music climbed 8.3%, to $931 million from $860 million. In fact, digital sales now make up 68% of total sales. Excluding one-time items, earnings in the latest quarter fell 22.9%, to $111.0 million,…