Warner Music Group Reports Third-Quarter Revenues Rise, Sells Off Spotify Stake

Q3 Financials

WARNER MUSIC GROUP has released its third-quarter financial results for the period ended JUNE 30th, 2018.  VARIETY reports, "In its earnings call on TUESDAY morning, WARNER MUSIC GROUP announced that it has now sold its entire stake in SPOTIFY, realizing $504 million. CEO STEVE COOPER said that the sale resulted in $126 million 'credited to artist accounts on their JUNE 30th royalty statements which are issued around the world in AUGUST and SEPTEMBER.' A rep confirmed that distributed labels are included in that amount, if their deal terms include it."

“Amazing new music from our artists and songwriters and great execution from our global operators have driven our year-to-date revenue up 12%, or 7% in constant currency,” said CEO STEVE COOPER.  “While streaming continues to fuel our growth, we are exploring a wide array of creative and commercial opportunities in order to position ourselves for long-term success.” 

“We are pleased with our revenue growth in the context of a very difficult prior-year comparison,” added EVP/CFO ERIC LEVIN.  “The health of our business is evidenced by our very strong cash generation.”

The Highlights

• Total revenue grew 4.5% or was up 1.9% in constant currency 
• Digital revenue grew 16.1% or was up 14.1% in constant currency 
• Net income was $321 million versus $143 million in the prior-year quarter
• OIBDA was $99 million versus $115 million in the prior-year quarter

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