Warner Music Group generated complete revenues of USD $1.48 billion in calendar This autumn 2022 (the three months to finish of December).
That determine – encompassing recorded music, music publishing and different actions – was down 2.7%YoY at fixed forex, the agency advised traders on Thursday (February 9).
The music firm revealed these numbers as a part of its calendar This autumn 2022 (fiscal Q1) monetary outcomes.
Inside the submitting, Warner notes that it noticed “underlying progress in complete streaming income regardless of a challenged macroeconomic atmosphere and the influence of an extra week within the prior-year quarter”.
Excluding the influence of the extra week, Warner’s complete income was up 2.0% at fixed forex.
Warner’s submitting reveals some finer particulars in regards to the efficiency of the enterprise’s recorded music and music publishing operations:
Recorded Music
The corporate’s recorded music income was down 5.6% YoY at fixed forex to $1.239 billion in calendar This autumn.
Warner says that this outcome was pushed “by a decline in digital, bodily and artist companies and expanded-rights income”.
Warner’s recorded music streaming income, in the meantime, was down 2.6%YoY at fixed forex in calendar This autumn to $780 million (see beneath).
Adjusted for the influence of an extra week within the prior-year quarter, recorded music streaming income was up 4.8% in fixed forex.
The corporate says that its recorded music streaming income end in This autumn 2022, “displays a lighter launch schedule and a market-related slowdown in ad-supported income”.
Warner reviews that it generated bodily revenues of $133 million in calendar This autumn (see beneath), which was down 26.5%at fixed forex. The corporate says that this outcome was “primarily resulting from a lighter launch schedule”.
In the meantime, the corporate’s artist companies and expanded-rights income decreased 4.2% at fixed forex to $206 million, with the outcome owing, based on Warner, “to decrease direct-to-consumer merchandising income at EMP and decrease promoting income”.
Elsewhere on the firm’s recorded music enterprise, licensing revenues elevated 16.9% at fixed forex to $97 million, due “to a rise in broadcast charges, synchronization and different third-party licensing, partially offset by the influence of trade charges”, based on the corporate.
Excluding the influence of the extra week, recorded music income decreased 0.2% at fixed forex.
Warner’s main recorded music sellers in This autumn 2022 included Purple Sizzling Chili Peppers, Zach Bryan, Lizzo and Ed Sheeran.
Music Publishing
Warner’s world music publishing division – Warner Chappell Music – noticed its turnover improve by 14.2% YoY at fixed forex in calendar This autumn to $250 million (see beneath).
The corporate’s music publishing streaming income elevated 16.8% at fixed forex, reflecting what it says was “the continued progress in streaming and timing of recent digital offers”.
WARNER’S CALENDAR This autumn IN SUMMARY (% IN CONSTANT CURRENCY):
Warner Music Group’s general revenues have been down 2.7% YoY at fixed forex to $1.488 billion in calendar This autumn;
Excluding the influence of an extra week within the prior-year quarter, Warner’s complete income was up 2.0% at fixed forex;
Recorded music revenues have been down 5.6% YoY at fixed forex to $1.239 billion;
Inside that determine, recorded music streaming revenues have been down 2.6%YoY at fixed forex to $780 million;
Music publishing revenues – at Warner Chappell Music – have been up 14.2% YoY at fixed forex to $250 million.
WMG: PROFITABILITY IN CALENDAR This autumn
WMG’s web revenue stood at $124 million within the calendar This autumn quarter, versus $188 million within the prior-year quarter.
The agency’s quarterly adjusted OIBDA was $335 million, which was flat at fixed forex.
And its adjusted EBITDA declined by 4% (not fixed forex) to $350 million versus $389million within the prior-year quarter.
Commenting on the ends in a press release throughout the submitting right now, Warner Music Group’s new CEO Robert Kyncl, advised traders: “As we navigate a difficult enterprise atmosphere, we anticipate to have a powerful launch schedule within the second half of 2023 whereas managing our prices all through.”
“As we navigate a difficult enterprise atmosphere, we anticipate to have a powerful launch schedule within the second half of 2023 whereas managing our prices all through.”
Robert Kyncl, Warner Music Group
Added Kyncl: “Music’s worth, energy, and ubiquity are among the many many causes I made a decision to hitch WMG and lead the subsequent part of our evolution.
“The foundations of this firm are sturdy, and our addressable market is repeatedly rising. We’re excited to drive new monetization alternatives by way of our investments in new artists and songwriters, our catalog, and our world enlargement.”
“Our outcomes replicate our resilience and operational self-discipline within the face of macroeconomic headwinds, in addition to the influence of the additional week within the prior-year quarter.”
Eric Levin, Warner Music Group
Eric Levin, CFO, Warner Music Group, added: “Our outcomes replicate our resilience and operational self-discipline within the face of macroeconomic headwinds, in addition to the influence of the additional week within the prior-year quarter.
“Our continued give attention to effectivity enabled us to ship sturdy working and free money circulate progress, even whereas sure income traces got here underneath stress. We’re captivated with our launch schedule for the second half of the fiscal yr, which can characteristic superb music from a few of our largest artists.”
