Warner Music Group posted a profit of $2 million in its fiscal second quarter ended March 31 2013 as overall revenues jumped 8%.
Net income moved into the black compared to a $36 million loss for the same period in 2012.
Overall WMG revenue went from $623m in 2012 to $675m, while digital revenue saw a 20% rise from $235m to $281m.
WMG’s digital revenue represented 41.6% of total revenue for the quarter, compared to 37.7% in the prior-year quarter. The growth in digital revenue reflects growth in subscription and streaming revenue as well as download revenue.
Recorded Music revenue grew 11%, or 12.4% on a constant-currency basis. Physical and digital revenue were up 11.8% and 18.0%, respectively, due to a very strong release schedule and solid performances from carryover releases. Licensing revenue grew 10.6%. Artist Services and Expanded Rights revenue declined 16.7% due primarily to the timing of tours.
Recorded Music digital revenue represented 47.3% of total Recorded Music revenue, compared to 44.5% in the prior-year quarter. Domestic Recorded Music digital revenue was $145 million, or 58.2% of total domestic Recorded Music revenue, compared to 59.4% in the prior-year quarter.
Revenue growth in the US, UK, France, Germany, Canada and Latin America was offset by declines in Japan, Italy and other parts of Asia and Europe. The company earkmarked Bruno Mars, Josh Groban, Fun., Ed Sheeran and Blake Shelton as major sellers.
Music Publishing revenue was flat, and grew 0.8% on a constant-currency basis. The Digital revenue grew 50.0%, driven by increases in both subscription and streaming revenue and download revenue, and performance revenue grew 4.3%, due to recent investments in film and TV assets.