Warner Music Posts Encouraging Quarterly Results, Boosted by Streaming and Hits From Rosé, Teddy Swims and More
Warner Music Group’s fiscal third quarter, which concluded June 30, was a cautiously encouraging one, with revenue increasing by 8.7% (7% in constant currency) and streaming-specific revenues inching up by 4% (2.9% constant currency), the company reported today. However, the company reported a net loss of $16 million, down from $141 million net income in the same quarter last year.
Rainmaking artists for WMG over the quarter included Baekhyun, Rosé, Bruno Mars, the Grateful Dead and Teddy Swims.
Shares in WMG were up about 2% on the day and trading at $30.63 at the time of writing.
Total revenues for the quarter were $1.68 billion, up from $1.55 billion the year prior, with streaming revenues hitting $895 million across both subscription (75% of streaming revenues) and ad-supported (25%); WMG struck new streaming deals with Spotify and Amazon earlier this year.
Total revenue increased in part on the strength of artist services, licensing and expanded-rights, along with growth in music publishing.
“This quarter we delivered massive chart hits, breakthrough stars, strong revenue growth, and market share gains… all of which show our strategy is working,” said Robert Kyncl, CEO of WMG, in a statement.
Recorded music revenues stood at $1.35 billion, up from $1.25 billion a year prior. That revenue growth was, the company writes, “unfavorably impacted” by the termination of a distribution deal with BMG which resulted in $14 million less revenue compared to the same quarter last year; the BMG termination negatively impacted recorded music revenues similarly earlier this year as well, to the tune of $32 million.
Revenue from music publishing was up year-over-year by 10.2% (9.4% constant currency), to $336 million from $305 million the year prior. Synch revenues increased 28.6%.
Operating income for the company decreased 18.4%, from $207 million to $169 million, due in part to restructuring and impairment charges of $68 million, amortization expenses of $12 million and costs of about $9 million related to the departure of former CFO Bryan Castellani.
“We’re focused on accelerating growth in our core business, expanding margins, and deploying capital in ways that strengthen our creative and financial impact,” said current CFO Armin Zerza, who joined WMG from Activision Blizzard in May, in a statement.
Rainmaking artists for WMG over the quarter included Baekhyun, Rosé, Bruno Mars, the Grateful Dead and Teddy Swims.
Shares in WMG were up about 2% on the day and trading at $30.63 at the time of writing.
Total revenues for the quarter were $1.68 billion, up from $1.55 billion the year prior, with streaming revenues hitting $895 million across both subscription (75% of streaming revenues) and ad-supported (25%); WMG struck new streaming deals with Spotify and Amazon earlier this year.
Total revenue increased in part on the strength of artist services, licensing and expanded-rights, along with growth in music publishing.
“This quarter we delivered massive chart hits, breakthrough stars, strong revenue growth, and market share gains… all of which show our strategy is working,” said Robert Kyncl, CEO of WMG, in a statement.
Recorded music revenues stood at $1.35 billion, up from $1.25 billion a year prior. That revenue growth was, the company writes, “unfavorably impacted” by the termination of a distribution deal with BMG which resulted in $14 million less revenue compared to the same quarter last year; the BMG termination negatively impacted recorded music revenues similarly earlier this year as well, to the tune of $32 million.
Revenue from music publishing was up year-over-year by 10.2% (9.4% constant currency), to $336 million from $305 million the year prior. Synch revenues increased 28.6%.
Operating income for the company decreased 18.4%, from $207 million to $169 million, due in part to restructuring and impairment charges of $68 million, amortization expenses of $12 million and costs of about $9 million related to the departure of former CFO Bryan Castellani.
“We’re focused on accelerating growth in our core business, expanding margins, and deploying capital in ways that strengthen our creative and financial impact,” said current CFO Armin Zerza, who joined WMG from Activision Blizzard in May, in a statement.