Warner Music Group Fourth Quarter Impacted By Exchange Rates
December 10, 2015 at 4:53 AM (PT)
WARNER MUSIC GROUP CORP. fiscal fourth quarter total revenue declined 2.7% to $750 million but rose 7.3% in constant currency, with digital revenue up 10.6% to $333 million (19.8% in constant currency) and net loss narrowing slightly from $24 million to $23 million. Major sellers in the quarter included ED SHEERAN, IRON MAIDEN, the "FURIOUS 7" soundtrack, MEEK MILL, and DAVID GUETTA.
For the Recorded Music segment, down 2% to $631 million, growth in digital and artist services and expanded-rights revenue was offset by declines in physical and licensing revenue, blamed mostly on exchange rates, while for Music Publishing, down 5% to $123 million, growth in digital and synchronization revenue was offset by declines in performance and mechanical revenue, also impacted by exchange rates. The U.S. and CHINA led revenue generation but were "more than offset" by declines in "certain European markets." Digital revenue growth is being driven by streaming services, the company said.
“We had an excellent year,” said CEO STEPHEN COOPER. “We’ve topped the charts with break-out talent, legendary songwriters and global superstars. As the first music major to report streaming revenue exceeding download revenue, we’ve continued to lead the digital transformation, helping us to achieve four consecutive years of revenue growth in our combined recorded music digital and physical business. We’ve outperformed the industry and we are well positioned to build on our success this coming year and beyond.”
“Our fourth-quarter and full-year results are impressive,” added EVP/CFO ERIC LEVIN. “We stayed focused on cost and cash management throughout the year and saw significant improvement in key financial metrics. As I reflect on my first full year at the company, I’m pleased by our progress and excited by our potential.”