Warner Music Group Reports Q4 And Full-Year Financials

Q4 And Full-Year Financials

WARNER MUSIC GROUP has released its fourth-quarter and full-year financial results for the periods ended SEPTEMBER 30th.

“We’re proud of everything we’ve accomplished in the past year, despite the challenging conditions that the world has faced. We’re essentially flat against a record-breaking prior year and, during the quarter, we grew 11% on an as-reported basis, excluding the revenue streams most impacted by COVID,” said CEO STEVE COOPER. “We’ve had huge successes from global megastars and local hitmakers, breakout sensations and long-time legends. Our streaming growth has stayed strong, and we’ve also seen an acceleration in a whole spectrum of emerging revenue streams such as social media, gaming, and in-home fitness. In this increasingly complex environment, where music is woven into every aspect of our lives, our creative expertise and global reach are more valuable than ever.”

“Our results are underpinned by the continued momentum we are seeing in streaming and the operating leverage driven by our digital transformation and business optimization initiatives,” added EVP/CFO ERIC LEVIN. “As we look toward the future, we are confident in our long-term growth prospects, particularly as the areas of our business that have been most impacted by COVID return to normal.”

Financial Highlights:

• Continued Momentum in Streaming Highlighted by Sequential Improvement in Revenue Growth
• Delivered Double-Digit Digital Revenue Growth for the Quarter and Full Year with Digital Revenue Contribution Increasing to 65% of Total Revenue 
• Executed Significant Deals with Key Digital Partners in 2020 and Increased Revenue Contribution from Emerging Platforms, Unlocking New Value-Creation Opportunities
• Achieved Strong Year-Over-Year Growth and Margin Expansion in Adjusted OIBDA and Adjusted EBITDA

For the three months ended SEPTEMBER 30th:

• Total revenue was up 0.2% or down 1.1% in constant currency
• Net income was $1 million versus $91 million in the prior-year quarter
• OIBDA increased 63% to $155 million versus $95 million in the prior-year quarter
• Adjusted OIBDA increased 35% to $174 million versus $129 million in the prior-year quarter
• Adjusted EBITDA increased 33% to $177 million versus $133 million in the prior-year quarter

For the twelve months ended SEPTEMBER 30th:

• Total revenue was down 0.3% or up 0.4% in constant currency
• Net loss was $470 million versus net income of $258 million in the prior year
• OIBDA was $32 million versus $625 million in the prior year
• Adjusted OIBDA increased 11% to $790 million versus $713 million in the prior year
• Adjusted EBITDA increased 14% to $837 million versus $737 million in the prior year

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