Warner Music Group (WMG)
Pretax margin
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 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 | 265,000 | 236,000 |
| Revenue (ttm) | US$ in thousands | 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 | 4,475,000 | 4,390,000 |
| Pretax margin | 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% | 5.92% | 5.38% |
March 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $720,000K ÷ $6,217,000K
= 11.58%
Warner Music Group's pretax margin has exhibited fluctuating trends over the provided financial periods. In Q1 2024, the pretax margin stood at 11.58%, showing an improvement compared to the previous quarter. This indicates that the company was able to generate more profit before taxes for every dollar of revenue.
Looking back over the past few quarters, there was a general upward trend from Q2 2021 to Q1 2022, with the pretax margin peaking at 12.23% in Q3 2022. However, there was a notable decline in profitability in Q4 2022 and Q1 2023, where the pretax margin fell to below 10%.
The pretax margin turned negative in Q1 2021 and Q4 2020, indicating that the company incurred losses before taxes in those periods. However, there was a significant recovery in profitability from Q2 2021 onwards.
Overall, Warner Music Group's pretax margin shows variability but generally reflects the company's ability to manage costs and generate profits before accounting for taxes. It is important for stakeholders to monitor these trends to assess the company's operational efficiency and financial health.
Peer comparison
Mar 31, 2024