Warner Music Group Q1 Revenues Rise

Revs Up

WARNER MUSIC GROUP CORP. fiscal first quarter total revenue grew 8% (10.6% in constant currency) to $917 million, with digital revenue up 27.6% (30.2% in constant currency) to $444 million; net income fell from $28 million to $24 million (blamed on a loss on extinguishment of debt and increased tax expense based on higher pre-tax income this quarter, compared to last year's, which included a tax benefit not applicable to this year's figure), and OIBDA rose from $137 million to $157 million.

The revenue figures reflected growth in the Recorded Music business, including digital and artist services and expanded-rights revenue, and Music Publishing digital and synchronization revenue, partially offset by declines in Recorded Music physical and licensing revenue and Music Publishing mechanical and performance revenue.  Digital revenue now represents 48.4% of total revenue, up from 41%.

The Recorded Music operation's revenue grew 8.1% (10.5% in constant currency) to $797 million, with credit given to BRUNO MARS, MICHAEL BUBLÉ, TWENTY ONE PILOTS, "HAMILTON," and "SUICIDE SQUAD."   Music Publishing rose 8.9% (10.7% in constant currency).
 
“Our strong momentum continues with excellent first-quarter results including 11% constant-currency revenue growth on top of 11% growth in the prior-year quarter,” said CE STEVE COOPER.  “While streaming continues to drive industry growth, we are outperforming the market thanks to extraordinary music from our artists coupled with first-class execution from our operators around the world.”
 
“We had another great quarter and I am very pleased with our revenue, OIBDA and cash flow performance,” added EVP/CFO ERIC LEVIN.  “Our formula for sustainable growth is clearly working.”

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