Warner Music Group Reports Q3 Revs Rise 27%

Q3 Revs Rise 27%

WARNER MUSIC GROUP CORP. has released third-quarter financial results for the period ended JUNE 30th.

“We’re proud of everything we’ve accomplished during our first year as a publicly traded company,” said CEO STEVE COOPER. “During a very challenging time, we’ve focused on investing in our core business and building an array of innovative growth opportunities. Outstanding releases from our artists and songwriters, coupled with imaginative execution by our operators, delivered excellent results in the third quarter. We’re looking forward to wrapping up our fiscal year with a slate of great new releases from established and emerging stars.” 

“The third quarter was highlighted by impressive streaming numbers, recovery in several areas that had been negatively impacted by COVID, and strong operating leverage that drove margin expansion,” said CFO ERIC LEVIN. “We continue to create value through our wide-ranging services to artists and songwriters, to drive shareholder return through our disciplined allocation of capital, and to deliver long-term growth through our digital-first approach to business.” 

Financial Highlights:

• Total revenue grew 27% propelled by streaming acceleration and partial recovery in certain COVID-impacted areas
• Recorded music streaming revenue grew 27% powered by chart-topping new music
• Robust growth in revenue from emerging streaming platforms
• Margin expansion and high operating cash flow conversion driven by strong operating leverage

For the three months ended June 30, 2021:

• Total revenue grew 33% or 27% in constant currency
• Digital revenue grew 29% or 23% in constant currency
• Net income was $61 million versus net loss of $519 million in the prior-year quarter
• OIBDA was income of $241 million versus a loss of $371 million in the prior-year quarter
• Adjusted OIBDA increased 58% to $263 million versus $166 million in the prior-year quarter
• Adjusted EBITDA increased 49% to $282 million versus $189 million in the prior-year quarter.

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