Revenue, Income Down For Warner Music Group In Fiscal First Quarter

Q1 Results

WARNER MUSIC GROUP CORP. fiscal first quarter 2023 revenue fell 7.8% year-over-year (3% in constant currency) to $1.5 billion, with digital revenue off 5% (1% in constant currency) to $952 million, recorded music revenue down 11% to $1.239 million, and music publishing revenue up 9% to $250 million. The revenue decreases were driven by declines in recorded music physical and artist services and expanded-rights revenue and music publishing sync revenue, partially offset by growth in recorded music licensing revenue and music publishing performance revenue. Net income dropped 34% to $124 million (23 cents/basic and diluted share), and Adjusted OIBDA decreased 6% (flat in constant currency) to $335 million.

Artists cited as leading sellers included RED HOT CHILI PEPPERS, ZACH BRYAN, LIZZO, and ED SHEERAN.

“Music’s value, power, and ubiquity are among the many reasons I decided to join WMG and lead the next phase of our evolution,” said CEO ROBERT KYND. “As we navigate a challenging business environment, we expect to have a strong release schedule in the second half of 2023 while managing our costs throughout. The foundations of this company are strong, and our addressable market is continuously growing. We are excited to drive new monetization opportunities through our investments in new artists and songwriters, our catalog, and our global expansion.”

“Our results reflect our resilience and operational discipline in the face of macroeconomic headwinds, as well as the impact of the extra week in the prior-year quarter,” said CFO ERIC LEVIN. “Our continued focus on efficiency enabled us to deliver strong operating and free cash flow growth, even while certain revenue lines came under pressure. We are enthusiastic about our release schedule for the second half of the fiscal year, which will feature amazing music from some of our biggest artists.”

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