Warner Music Group Corp’s shares jumped in pre-market trading as it beat Street expectations and backed full-year margin guidance after reporting a healthy rise in financial third-quarter revenue.
The entertainment and record label conglomerate said revenue in the quarter to June 30 rose 9% to $1.56 billion from $1.43 billion the year prior while net income was flat at $124 million compared to $125 million before.
EPS fell to 23 cents a share from 24 cents a share in the year-ago quarter, but this was still ahead of analysts' forecasts of 20 cents.
Music Publishing revenue climbed 16% to $283 million, while Digital revenue advanced 9% $1.03 billion.
Warner Music said strong operating income before depreciation and amortization growth and margin expansion reinforce confidence in the high end of full-year margin guidance.
“In the third quarter, we delivered solid growth across key metrics which give us increased confidence in our full-year margin and operating cash flow targets,” Eric Levin, chief financial officer, said.
Shares were 4.7% higher at $32 in pre-market trade.