Warner Music Group Reports Total Revenues Down In Q3

3rd Quarter Results

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

Revenue was down 4.5% (or 3.1% in constant currency). Growth in recorded music and music publishing digital revenue was more than offset by a decline in recorded music physical, artist services and expanded-rights and licensing revenue and in music publishing performance, mechanical and synchronization revenue. The revenue decline was primarily due to COVID-related business disruption and the unfavorable impact from foreign currency exchange rates, partially offset by the continued growth in streaming. Digital revenue grew 11.1% (or 13.4% in constant currency), and represented 71.3% of total revenue, compared to 61.2% in the prior-year quarter.

“We’re very pleased with our performance this quarter, especially in light of the global pandemic.  Our results highlight the underlying strength and resilience of our business. Streaming revenue grew double digits and our digital transformation continues,” said CEO STEVE COOPER. “Our commitment to new artist development is illustrated by the fact that four out of our top five best-sellers this quarter were from artists releasing debut or sophomore albums.  Our artists and songwriters continue to create music that moves the world including, in the U.S., the most-streamed song of 2020, as well as the No.1 and No. 2 biggest Pop songs during the first half of the calendar year.”

• Digital revenue grew 11.1% or 13.4% in constant currency
• Total revenue was down 4.5% or 3.1% in constant currency
• Net loss was $519 million versus net income of $14 million in the prior-year quarter
• OIBDA was a loss of $371 million versus income of $124 million in the prior-year quarter
• Adjusted OIBDA was $166 million versus $148 million in the prior-year quarter
• Adjusted EBITDA was $189 million versus $159 million in the prior-year quarter

“These results are slightly better than our expectations, given the sustained effect that COVID has had on certain aspects of our business,” added EVP/CFO ERIC LEVIN. “That’s a testament to the incredible ability of our teams, our artists and our songwriters to pivot and adapt, and to keep the hits coming. We have a robust cash position and all the music and resources needed to come out the other side of this with our long-term prospects as strong as ever.”

« see more Net News