Shares of Warner Music Group Corp. WMG rose 2.0% in premarket trading Tuesday, after the music recorder and publisher reported fiscal second-quarter revenue that rose above expectations, amid strong growth in music publishing streaming revenue. Net income for the quarter to March 31 fell to $34 million, or 6 cents a share, from $92 million, or 18 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted net income rose to $116 million from $111 million, but adjusted per-share figures were not provided. Revenue grew 1.7% to $1.40 billion, above the FactSet consensus of $1.36 billion. Music publishing revenue increased 12% to $257 million, with digital revenue growing 15% to $146 million. Recorded music revenue eased 0.3% to $1.14 billion, as digital revenue declined 1% to $796 million. “With continued momentum in music publishing, and a more robust schedule that includes the return of worldwide superstars and new artists breaking globally, we are optimistic about the second half of the year,” said Chief Executive Officer Robert Kyncl. The stock has tumbled 18.7% year to date through Monday, while the S&P 500 SPX has gained 7.8%.
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