Warner Music Group Revenues Rise Despite Pandemic, But Income Falls In First Quarter

Revenues Up, Income Down

WARNER MUSIC GROUP saw revenue rise 6.3% year-to-year (up 3.8% in constant currency) to $1.335 billion for first quarter 2021, with the increase credited to growth in the Recorded Music (up 7% to $1.161 billion) and Music Publishing (up 1% to $175 million) divisions, partially offset by a decline in Recorded Music physical and artist services and expanded-rights revenue and in Music Publishing performance, mechanical and synchronization revenue. Net income fell 19% to $99 million and Adjusted net income slipped 10% to $114 million.

"Despite the impact of COVID, we generated the highest quarterly revenue in our 17-year history as a standalone company, growing 4% compared to the prior-year period, which was unaffected by COVID," said CEO STEVE COOPER. "The strong double-digit growth in our digital revenue and direct-to-consumer business more than offset the continued disruption to our performance, merchandising, and physical revenue. We have some fantastic new music from amazing artists and songwriters on the way, and we continue to grow our investment in a new generation of talent, as well as inventing bold and memorable ways to impact global culture."

“We are extremely proud of our first-quarter results, which were highlighted by significant growth over a number of key metrics when compared to a previous record-breaking quarter," added EVP/CFO ERIC LEVIN. "While certain areas of our business remain challenged due to COVID, our core streaming business remains strong and our direct-to-consumer destinations and emerging streaming platforms have bolstered our performance. We are well-positioned for long-term growth.”

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