Analyst Note| Neil Macker, CFA |
Warner Music posted a mixed fiscal 2022 second quarter with revenue in line and adjusted EBITDA just below FactSet consensus. Demand for streaming music remains strong, with the emergence of newer platforms like Peloton and TikTok driving growth of 16%. Warner Music’s top line also benefited from the return of live music, but these lower-margin revenues limited margin expansion. We retain our $37 fair value estimate.