Shares in Warner Music Group Corp fell 6% after earnings from the publisher of Cardi B, Dua Lipa, Ed Sheeran, Michael Bublé and Lizzo came in shy of Wall Street's expectations.
Revenue of $1.49 billion was generated in the group's fiscal second quarter, up 7% year-on-year, and just ahead of the $1.48 billion average analyst estimate.
Net income of $96 million was much improved compared to $37 million in the prior year, though earnings per share of $0.18 were short of the $0.20 analyst consensus.
The revenue performance in the quarter was driven by an acceleration in Recorded Music subscription streaming growth and continued momentum in Music Publishing.
In the Recorded arm, underlying digital revenue increased 10.2% on a constant currency basis and streaming revenue increased 11.1%.
Profit for Recorded was down 11% to $134 million, primarily driven by severance costs and impairment losses as part of February's strategic restructuring plan.
CEO Robert Kyncl said: “This quarter we saw a healthy, dynamic mix of hits across a range of genres, geographies, and generations.
“With our commitment to artist and songwriter development as our guiding principle, we continue to discover great talent, build sustainable careers, champion the value of music, and grow the catalog of tomorrow. We are positioning WMG for long term growth and look forward to delivering successful music in the second half of 2024 and beyond.”