Warner Music Group labels' streaming revenue up 29% in Q2

Warner Music Group labels' streaming revenue up 29% in Q2

Recorded music streaming revenues at Warner Music Group hit $537 million (£410.9m) in Q2, a year-on-year increase of 29.4%.

For the six-month period ending March 31, the streaming total for recordings passed a billion dolllars. The final figure was $1.03bn (£788.2m), up 26.9% on the same period a year earlier.

Overall, WMG revenue grew 13.2% (or 17.6% at constant currency) year-on-year to reach $1.09bn (£834.2m). The major said revenue grew in all regions. 

WMG digital revenue grew 20.8% (25% at constant currency), and represented 60.6% of total revenue, compared to 56.8% in the prior-year quarter. 

Recorded Music revenue grew 18% (or 22.4% at constant currency).  

There was growth in recorded music digital, artist services, expanded-rights and music publishing digital revenue. But WMG could not repeat the increase in sales for physical music recorded in the prior quarter.

Licensing and publishing revenue from mechanical, performance and sync were also down year-on-year. Overall revenue at Warner/Chappell was down 9.2% year-on-year (down 6% at constant currency).

WMG operating income was $122m (£93.4m) compared to $83m (£63.5m) in the prior-year quarter. OIBDA was $191m (£146.2m), up 25.7% on Q1.

Major sellers in Q2 included Twice, Meek Mill, The Greatest Showman soundtrack, Ed Sheeran and Cardi B.

“Our second-quarter results were strong,” said Steve Cooper, Warner Music Group’s CEO. “Our sustained investment in our artists and songwriters, our artist services business and our world-class operators, are delivering great results.” 

“Revenue and OIBDA were both up double-digits,” added Eric Levin, Warner Music Group’s EVP and CFO. “Our cash position remains strong, with $470 million on the balance sheet at quarter-end.”

During the earnings call, Cooper welcomed the EU vote on the Copyright Directive.

“This groundbreaking legislation clarifies that user upload content platforms can no longer exploit safe harbours,” he said.

Cooper also noted the closer collaboration between recorded music and publishing at its new HQ. He hailed the appointment of “highly respected” Guy Moot to jointly run Warner/Chappell.

“Our spectacular downtown LA office is now open for business,” he said.

 

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