Warner Music Group has issued its financial results for the company’s fiscal second quarter, which covers calendar Q1 (to March 31, 2023).
The results coincide with the release of a new Ed Sheeran album, which is set to deliver a boost to recordings revenue in calendar Q2.
Warner Music Group total revenue increased by 4.6% year-on-year to $1.399 billion (all figures are in constant currency). Digital revenue increased 3.7% to $942m.
Recorded music revenue growth was flat at $1.143bn during WMG’s fiscal Q2. Recorded music streaming increased by 2.2%, a performance attributed to a lighter release schedule as well as a market-related slowdown in ad-supported revenue.
Similarly, physical music revenue was down as reported but increased on a constant currency basis ($118m).
Major sellers in the quarter included Michael Bublé, Ed Sheeran, Linkin Park, Zach Bryan and Dua Lipa.
Music Publishing revenue increased by 14.7% to $257m. It was driven by growth in digital, performance and mechanical revenue.
We're investing in the artists, songwriters, team, and technology that will deliver continued growth and long-term success
“With continued momentum in music publishing, and a more robust schedule that includes the return of worldwide superstars and new artists breaking globally, we are optimistic about the second half of the year,” said Robert Kyncl, CEO, Warner Music Group. “As the music ecosystem continues to morph, and the use cases multiply, it only increases conviction in our tech-enabled strategy. In a highly proactive, fiscally responsible way, we're investing in the artists, songwriters, team, and technology that will deliver continued growth and long-term success.”
Adjusted OIBDA increased by 8% to $286 million.
“While macroeconomic, currency, and release slate headwinds continued to impact our revenue this quarter, our fiscal discipline enabled us to deliver solid Adjusted OIBDA growth and margin expansion,” said Eric Levin, CFO, Warner Music Group. “As we look to the future, we'll combine A&R and marketing excellence with tech innovation to achieve greater efficiency, scale, and growth.”