Recent news — quarterly earnings releases and big investments — had a big impact on some music company stocks on Thursday (9th February).
Warner Music Group’s stock fell 4.3% to $35.09 and fell 10.5% a day after the company announced its first quarter results on Thursday. Warner’s revenue fell 7.8% (2.7% at constant currency) to $1.48 billion and net income fell 34% to $124 million. A lighter release schedule, slower ad revenue, and a shorter quarter (he added an extra week in the same period last year) contributed to the decline. New CEO Robert Kinkle called it a “tough quarter,” pointing to a string of releases by Ed Sheeran, Cardi B, and David Guetta in the second half of the year.
MSG Entertainment’s stock rose 11.7% to $59.58, reaching $61.33 during the day, up 15% from yesterday’s close. Revenue in the quarter increased 24% to $642.2 million. The proposed spin-off he plans to complete by the end of March, with his MSG Sphere in Las Vegas due to open in his September. But investors had other reasons to cheer as MSGE announced it had implemented a cost-cutting program that would lead to job cuts and other non-labor savings.
In Seoul, on Friday (Feb. 10), SM Entertainment shares rose nearly 19% to 117,000 won following news that HYBE acquired a 14.8% stake to become the largest shareholder. fell 11.5% to 109,800 won by the morning. Similarly, HYBE’s share price rose 10.2% to his 218,500 won ($172.76) before falling to 212,500 won ($168), up 7.2% from its previous close.
LiveOne’s stock rose 2.1% to $0.97 after Monday’s closing price rose 14.7% to $1.09. The company has raised its adjusted EBITDA guidance for the full year from $11 million to $12 million. LiveOne’s earnings for the quarter ended Dec. 31 he fell 17% to $27.3 million. This follows the company’s decision not to produce “capital-intensive big or pay-per-view events” until next fiscal year. This decision, along with reducing annual expenses and overheads, helped LiveOne transform its Adjusted EBITDA from -$4.8 million to $3.0 million.
US markets generally fell on Thursday. The New York Stock Exchange is down 0.7% of him and the Nasdaq is down 1% of him. The S&P 500 is down 0.9%. However, European markets performed well. The DAX, an index of 40 blue-chip German stocks, rose 0.7%. The FTSE 100, his measure of 100 stocks on the London Stock Exchange, rose 0.3% for him.