Warner Music Group generated whole 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 foreign money, the agency instructed traders on Thursday (February 9).
The music firm revealed these numbers as a part of its calendar This autumn 2022 (fiscal Q1) monetary outcomes.
Throughout the submitting, Warner notes that it noticed “underlying development in whole streaming income regardless of a challenged macroeconomic surroundings and the impression of a further week within the prior-year quarter”.
Excluding the impression of the extra week, Warner’s whole income was up 2.0% at fixed foreign money.
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 foreign money to $1.239 billion in calendar This autumn.
Warner says that this end result 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 foreign money in calendar This autumn to $780 million (see beneath).
Adjusted for the impression of a further week within the prior-year quarter, recorded music streaming income was up 4.8% in fixed foreign money.
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 studies that it generated bodily revenues of $133 million in calendar This autumn (see beneath), which was down 26.5%at fixed foreign money. The corporate says that this end result was “primarily on account of a lighter launch schedule”.
In the meantime, the corporate’s artist companies and expanded-rights income decreased 4.2% at fixed foreign money to $206 million, with the end result owing, in line with 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 foreign money to $97 million, due “to a rise in broadcast charges, synchronization and different third-party licensing, partially offset by the impression of trade charges”, in line with the corporate.
Excluding the impression of the extra week, recorded music income decreased 0.2% at fixed foreign money.
Warner’s main recorded music sellers in This autumn 2022 included Pink Scorching Chili Peppers, Zach Bryan, Lizzo and Ed Sheeran.
Music Publishing
Warner’s world music publishing division – Warner Chappell Music – noticed its turnover enhance by 14.2% YoY at fixed foreign money in calendar This autumn to $250 million (see beneath).
The corporate’s music publishing streaming income elevated 16.8% at fixed foreign money, reflecting what it says was “the continued development in streaming and timing of recent digital offers”.
WARNER’S CALENDAR This autumn IN SUMMARY (% IN CONSTANT CURRENCY):
Warner Music Group’s general revenues had been down 2.7% YoY at fixed foreign money to $1.488 billion in calendar This autumn;
Excluding the impression of a further week within the prior-year quarter, Warner’s whole income was up 2.0% at fixed foreign money;
Recorded music revenues had been down 5.6% YoY at fixed foreign money to $1.239 billion;
Inside that determine, recorded music streaming revenues had been down 2.6%YoY at fixed foreign money to $780 million;
Music publishing revenues – at Warner Chappell Music – had been up 14.2% YoY at fixed foreign money to $250 million.
WMG: PROFITABILITY IN CALENDAR This autumn
WMG’s web earnings 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 foreign money.
And its adjusted EBITDA declined by 4% (not fixed foreign money) to $350 million versus $389million within the prior-year quarter.
Commenting on the leads to a press release throughout the submitting as we speak, Warner Music Group’s new CEO Robert Kyncl, instructed traders: “As we navigate a difficult enterprise surroundings, we count on to have a robust launch schedule within the second half of 2023 whereas managing our prices all through.”
“As we navigate a difficult enterprise surroundings, we count on to have a robust 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 affix WMG and lead the following section of our evolution.
“The foundations of this firm are robust, and our addressable market is repeatedly rising. We’re excited to drive new monetization alternatives by means of our investments in new artists and songwriters, our catalog, and our world growth.”
“Our outcomes mirror our resilience and operational self-discipline within the face of macroeconomic headwinds, in addition to the impression of the additional week within the prior-year quarter.”
Eric Levin, Warner Music Group
Eric Levin, CFO, Warner Music Group, added: “Our outcomes mirror our resilience and operational self-discipline within the face of macroeconomic headwinds, in addition to the impression of the additional week within the prior-year quarter.
“Our continued deal with effectivity enabled us to ship robust working and free money circulation development, even whereas sure income traces got here underneath strain. We’re passionate about our launch schedule for the second half of the fiscal 12 months, which can characteristic superb music from a few of our largest artists.”
