Warner Music Group (WMG)
Pretax margin
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 558,000 | 724,000 | 720,000 | 661,000 | 600,000 | 575,000 | 573,000 | 644,000 | 736,000 | 601,000 | 540,000 | 582,000 | 453,000 | 381,000 | -190,000 | -444,000 | -452,000 | -417,000 | 53,000 | 254,000 |
| Revenue (ttm) | US$ in thousands | 6,248,000 | 6,253,000 | 6,217,000 | 6,116,000 | 5,907,000 | 5,889,000 | 5,802,000 | 5,817,000 | 6,017,000 | 5,838,000 | 5,734,000 | 5,608,000 | 5,293,000 | 5,039,000 | 4,721,000 | 4,542,000 | 4,463,000 | 4,461,000 | 4,509,000 | 4,528,000 |
| Pretax margin | 8.93% | 11.58% | 11.58% | 10.81% | 10.16% | 9.76% | 9.88% | 11.07% | 12.23% | 10.29% | 9.42% | 10.38% | 8.56% | 7.56% | -4.02% | -9.78% | -10.13% | -9.35% | 1.18% | 5.61% |
September 30, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $558,000K ÷ $6,248,000K
= 8.93%
Warner Music Group's pretax margin has shown fluctuations over the past few years, with varying levels of profitability. The pretax margin for the most recent quarter, ending in September 2024, stands at 8.93%, representing a decrease from the previous quarter's margin of 11.58%. It is worth noting that the pretax margin had been consistently positive from March 2021 to March 2024, signaling relatively healthy profitability levels during those periods.
However, there were instances of negative pretax margins in the quarters ending in December 2020 and March 2021, suggesting operational challenges or potential one-time events impacting profitability negatively during those periods. The positive trend in profitability resumed after March 2021, with notable improvements until the recent decline in the most recent quarter.
Overall, the pretax margin trend for Warner Music Group indicates fluctuations in profitability, underscoring the importance of monitoring cost management and revenue generation strategies to ensure sustained financial performance.
Peer comparison
Sep 30, 2024