Warner Music Group shares were trading downwards on Tuesday morning after its fiscal 2Q earnings came in well below estimates.
The firm reported quarterly earnings of $0.06 per share compared to earnings of $0.18 per share a year ago, missing the $0.20 per share figure pegged by Zacks.
In a statement, the music company said its fiscal 2Q earnings, which cover the period ended March 31, 2023, were affected by a slowdown in music streaming revenue as well as $41 million in severance costs for former CEO Steve Cooper and CFO Eric Levin.
Warner’s quarterly revenues did grow by 4.6% over the same previous-year period to $1.39 billion, but its recorded music division and streaming divisions both grew by only 2.2%.
The firm’s new CEO Robert Kyncl is hoping to put the company back on a heavier release schedule. Upcoming releases include new material from big names like Dua Lipa, David Guetta, Lil Uzi Vert, Burna Boy and Kelly Clarkson.
Shares of Warner Music fell around 10% on Tuesday morning in New York.
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