Warner Music Group has posted its fiscal This fall (calendar Q3) and FY monetary outcomes ending September 30, 2023.
WMG’s complete revenues for its full fiscal yr (the 12 months ended September 30) “eclipsed” $6 billion ($6.037bn) for the primary time within the firm’s historical past.
That FY determine – encompassing recorded music, music publishing and different actions – was up 3.9% YoYat fixed forex.
In calendar Q3 (the three months ended September 30 and the corporate’s fiscal fourth quarter), WMG generated complete revenues of $1.586 billion throughout recorded music, music publishing and different actions. That Q3 income determine was up4.5% YoY at fixed forex.
The quarter included profitable releases from the Barbie soundtrack, FIFTY FIFTY, Ed Sheeran, MISAMO and Zach Bryan.
Commenting on the corporate’s new set of outcomes, Robert Kyncl, CEO, Warner Music Group, informed traders on Thursday (November 16) that “we delivered on our promise of second-half enchancment, and reached over $6 billion in annual income for the primary time in WMG’s historical past”.
Credit score: Warner/press
“We delivered on our promise of second-half enchancment, and reached over $6 billion in annual income for the primary time in WMG’s historical past.”
Robert Kyncl, Warner Music Group
He added: “Because the music ecosystem is recognizing the worth of premium content material and rising markets proceed to achieve traction, our trade is wholesome and rising.
“With these tailwinds at our again, we’ve been working onerous to construct a WMG that can excel within the music trade of tomorrow and sit up for bringing you unimaginable music in 2024 from our extraordinary artists and songwriters.”
Recorded Music
In calendar Q3, Warner Music Group’s Recorded Music income was up 2.5% YoY at fixed forex to $1.291 billion.
Warner’s recorded music streaming income was up8.9% YoY at fixed forex in calendar Q3 to $848 million (see under).
In keeping with Warner, this progress in streaming income got here on account of a stronger launch schedule and progress in ad-supported income, which the corporate says contains the affect of its TikTok renewal.
In the meantime, Warner’s bodily income in calendar Q3 reached $130 million, up 5.7% YoY at fixed forex, “primarily as a consequence of stronger efficiency in america”.
Warner’s Licensing income reached $95 million in calendar Q3, up 6.7%YoY at fixed forex “with progress in broadcast charges and different licensing” in response to WMG.
Artist providers and expanded-rights income decreased 10.8% YoY at fixed forex to $189 million. In keeping with WMG, this was “primarily as a consequence of decrease merchandising income, [and was] partially offset by a rise in live performance promotion income”.
Music Publishing
Warner’s world music publishing division – Warner Chappell Music – elevated its turnover by 15.1% YoY at calendar Q3 at fixed forex to $298 million (see under).
WMG reviews that its music publishing streaming income elevated25.8% YoYat fixed forex to $190 million.
That progress in music publishing streaming income got here in consequence, in response to Warner, of “the continued progress in streaming”, in addition to the affect of digital deal renewals, which incorporates the corporate’s TikTok licensing deal renewal.
WARNER’S CALENDAR Q3 IN SUMMARY (% IN CONSTANT CURRENCY):
Warner Music Group’s total revenues had been up 4.5%YoY to $1.586 billion in calendar Q3;
Recorded music revenues had been up 2.5% YoYto $1.291 billion;
Inside that determine, recorded music streaming revenues had been up 8.9% YoY to $848 million;
Music publishing revenues – at Warner Chappell Music – had been up15.1% YoY to $298 million.
WMG: PROFITABILITY IN CALENDAR Q3
WMG’s web earnings stood at $154 million within the calendar Q3 quarter, versus $150 million within the prior-year quarter.
The agency’s quarterly adjusted OIBDA elevated by 17.8% YoY to $317 million.
And its adjusted EBITDA elevated by 23% (not fixed forex) to $340 million versus $276 million within the prior-year quarter (see under).
In a press release issued to traders right now, Bryan Castellani, CFO, Warner Music Group, stated: “Our efficiency within the quarter was underpinned by a strong launch slate and momentum in our Recorded Music streaming progress.”
“Our efficiency within the quarter was underpinned by a strong launch slate and momentum in our Recorded Music streaming progress.”
Bryan Castellani, Warner Music Group
He added: “This fueled our second-half enchancment which, mixed with our disciplined value administration, resulted in strong Adjusted OIBDA progress and margin growth for the total yr.
“We’re excited concerning the alternatives that lie forward for WMG to capitalize on favorable trade developments and drive shareholder worth by means of worthwhile progress and wholesome money stream conversion in 2024 and past.”Music Enterprise Worldwide
