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Warner Music Group Corp (WMG) reported third-quarter FY21 revenue growth of 33% year-on-year to $1.34 billion, beating the analyst consensus of $1.2 billion.

Recorded Music revenue grew 34% Y/Y to $1.15 billion, reflecting the continuing growth in streaming. Music Publishing increased 27% Y/Y to $189 million, driven by digital, synchronization, and mechanical revenue growth, and Digital grew 29% Y/Y to $928 million.

Adjusted OIBDA margin increased 320 bps to 19.6% due to strong operating performance and margin improvement associated with revenue mix. Adjusted EBITDA margin improved 230 bps to 21.0%. EPS of $0.12 missed the analyst consensus of $0.15.

Warner Music generated $91 million in operating cash flow and held $442 million in cash and equivalents. Free cash flow fell to $(71) million, down from $87 million a year ago.

The Q3 reflected impressive streaming numbers, recovery in several areas that COVID had negatively impacted, and powerful operating leverage that drove margin expansion, CFO Eric Levin stated.

Price action: WMG shares closed lower by 2.1% at $37 on Monday.