11:56 AM EDT, 07/11/2024 (MT Newswires) -- Warner Music's ( WMG ) fiscal Q3 results will likely highlight "solid" streaming revenue growth and improving margins, UBS Securities said Thursday in a report.

Total revenue is expected to rise 5% to $1.56 billion from a year earlier, UBS said. Results are set for Aug. 8.

While Spotify's (SPOT) "new pricing construct for bundled plans has weighed on label sentiment, we remain constructive on the monetization opportunity in music," UBS said.

Warner may benefit from "flow through from Spotify's price increase," the report said.

UBS expects "solid, albeit moderating revenue growth" for Warner's music publishing business at 11%" compared with growth in the high teens in recent quarters.

UBS has a buy rating on Warner and a $43 price target.

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