Earnings per Share

9 Months Ended

Jun. 30, 2023

Earnings per ShareThe Company utilizes the two-class method to report earnings per share. Basic earnings per share is computed by dividing net income available to each class of stock by the weighted average number of outstanding common shares for each class of stock. Diluted earnings per share is computed by dividing net income available to each class of stock by the weighted average number of outstanding common shares, plus dilutive potential common shares, which is calculated using the treasury-stock method. The potentially dilutive common shares did not have a dilutive effect on the Company’s EPS calculation for the three and nine months ended June 30, 2023 and 2022, respectively.

The following table sets forth the calculation of basic and diluted net income per common share under the two-class method for the three and nine months ended June 30, 2023 and 2022 (in millions, except share amounts, which are reflected in thousands, and per share data):


	Three Months Ended June 30,
	2023				2022
	Class A		Class B		Class A		Class B
Basic and Diluted EPS:
Numerator
Net income attributable to Warner Music Group Corp.	$	34	$	88	$	34	$	90
Less: Net income attributable to participating securities	(2)		—		(2)		—
Net income attributable to common stockholders	$	32	$	88	$	32	$	90
Denominator
Weighted average shares outstanding	138,290		377,650		137,165		377,650
Basic and Diluted EPS	$	0.23	$	0.23	$	0.24	$	0.24

	Nine Months Ended June 30,
	2023				2022
	Class A		Class B		Class A		Class B
Basic and Diluted EPS:
Numerator
Net income attributable to Warner Music Group Corp.	$	77	$	201	$	108	$	295
Less: Net income attributable to participating securities	(4)		—		(5)		—
Net income attributable to common stockholders	$	73	$	201	$	103	$	295
Denominator
Weighted average shares outstanding	137,990		377,650		132,494		382,178
Basic and Diluted EPS	$	0.53	$	0.53	$	0.77	$	0.77