Warner Music Group Reports Results For The Second Quarter

Q2 Financials

WARNER MUSIC GROUP has released second-quarter financial results for the period ended MARCH 31st, 2021.

"Following a strong first quarter, I’m happy to report that our momentum continued in Q2, and our business is stronger than ever," said CEO STEVE COOPER. "Despite the ongoing pandemic, we generated double-digit revenue growth in both recorded music and music publishing. Our success was driven by chart-topping new releases from our incredible artists and songwriters, as well as bold and imaginative execution from our world-class operators. We’re excited about the rest of year, as we have a fantastic slate of new music coming from established superstars and emerging talent.”

"In the second quarter, the continued strength of our core streaming business was bolstered by impressive growth in revenue from emerging streaming platforms, which drove healthy margins and free cash flow,” added EVP/CFO ERIC LEVIN. “We look forward to delivering long-term value as we continue to invest in culture-shifting talent, innovative technology, and dynamic new partnerships."

Financial highlights:

• Double-Digit Revenue Growth Highlighted by Strength across Recorded Music and Music Publishing
• Recorded Music Streaming Revenue Grew 20% Driven by Chart-Topping New Music
• Revenue Attributable to Emerging Streaming Platforms Continues to Show Accelerated Growth
• Continued Margin Expansion and High Free Cash Flow Conversion

For the three months ended March 3st1, 2021

• Total revenue grew 17% or 13% in constant currency
• Digital revenue grew 23% or 20% in constant currency
• Net income was $117 million versus net loss of $74 million in the prior-year quarter
• OIBDA increased to $228 million versus $12 million in the prior-year quarter
• Adjusted OIBDA increased 21% to $255 million versus $210 million in the prior-year quarter
• Adjusted EBITDA increased 25% to $268 million versus $214 million in the prior-year quarter

Warner Music Group Enters Partnership With And Invests In Wave

WARNER MUSIC GROUP has entered a partnership with, and invested in WAVE, a virtual entertainment company. Through this collaboration, WAVE will develop virtual performances, experiences, and monetization opportunities for WMG’s global roster of emerging and established artists. This includes new forms of ticketing, sponsorship, and in-show interactions for fans. 

“WMG has an incredible history of being a trailblazer in the music industry. They share our vision for pulling the future forward using new technologies that benefit artists and fans alike,” said WAVE CEO/Co-Founder ADAM ARRIGO. “We’re excited to partner with them to create interactive events that are unlike any other virtual concerts ever experienced."

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