Warner Music Group generated complete revenues of USD $1.48 billion in calendar This fall 2022 (the three months to finish of December).
That determine – encompassing recorded music, music publishing and different actions – was down 2.7%YoY at fixed foreign money, the agency advised buyers on Thursday (February 9).
The music firm revealed these numbers as a part of its calendar This fall 2022 (fiscal Q1) monetary outcomes.
Throughout the submitting, Warner notes that it noticed “underlying development in complete streaming income regardless of a challenged macroeconomic surroundings and the affect of an extra week within the prior-year quarter”.
Excluding the affect of the extra week, Warner’s complete income was up 2.0% at fixed foreign money.
Warner’s submitting reveals some finer particulars in regards to the efficiency of the enterprise’s recorded music and music publishing operations:
Recorded Music
The corporate’s recorded music income was down 5.6% YoY at fixed foreign money to $1.239 billion in calendar This fall.
Warner says that this consequence was pushed “by a decline in digital, bodily and artist providers and expanded-rights income”.
Warner’s recorded music streaming income, in the meantime, was down 2.6%YoY at fixed foreign money in calendar This fall to $780 million (see under).
Adjusted for the affect of an extra week within the prior-year quarter, recorded music streaming income was up 4.8% in fixed foreign money.
The corporate says that its recorded music streaming income end in This fall 2022, “displays a lighter launch schedule and a market-related slowdown in ad-supported income”.
Warner reviews that it generated bodily revenues of $133 million in calendar This fall (see under), which was down 26.5%at fixed foreign money. The corporate says that this consequence was “primarily as a result of a lighter launch schedule”.
In the meantime, the corporate’s artist providers and expanded-rights income decreased 4.2% at fixed foreign money to $206 million, with the consequence owing, in keeping with Warner, “to decrease direct-to-consumer merchandising income at EMP and decrease promoting income”.
Elsewhere on the firm’s recorded music enterprise, licensing revenues elevated 16.9% at fixed foreign money to $97 million, due “to a rise in broadcast charges, synchronization and different third-party licensing, partially offset by the affect of trade charges”, in keeping with the corporate.
Excluding the affect of the extra week, recorded music income decreased 0.2% at fixed foreign money.
Warner’s main recorded music sellers in This fall 2022 included Crimson Sizzling Chili Peppers, Zach Bryan, Lizzo and Ed Sheeran.
Music Publishing
Warner’s international music publishing division – Warner Chappell Music – noticed its turnover enhance by 14.2% YoY at fixed foreign money in calendar This fall to $250 million (see under).
The corporate’s music publishing streaming income elevated 16.8% at fixed foreign money, reflecting what it says was “the continued development in streaming and timing of latest digital offers”.
WARNER’S CALENDAR This fall IN SUMMARY (% IN CONSTANT CURRENCY):
Warner Music Group’s general revenues have been down 2.7% YoY at fixed foreign money to $1.488 billion in calendar This fall;
Excluding the affect of an extra week within the prior-year quarter, Warner’s complete income was up 2.0% at fixed foreign money;
Recorded music revenues have been down 5.6% YoY at fixed foreign money to $1.239 billion;
Inside that determine, recorded music streaming revenues have been down 2.6%YoY at fixed foreign money to $780 million;
Music publishing revenues – at Warner Chappell Music – have been up 14.2% YoY at fixed foreign money to $250 million.
WMG: PROFITABILITY IN CALENDAR This fall
WMG’s web earnings stood at $124 million within the calendar This fall quarter, versus $188 million within the prior-year quarter.
The agency’s quarterly adjusted OIBDA was $335 million, which was flat at fixed foreign money.
And its adjusted EBITDA declined by 4% (not fixed foreign money) to $350 million versus $389million within the prior-year quarter.
Commenting on the leads to an announcement throughout the submitting right this moment, Warner Music Group’s new CEO Robert Kyncl, advised buyers: “As we navigate a difficult enterprise surroundings, we anticipate to have a robust launch schedule within the second half of 2023 whereas managing our prices all through.”
“As we navigate a difficult enterprise surroundings, we anticipate to have a robust launch schedule within the second half of 2023 whereas managing our prices all through.”
Robert Kyncl, Warner Music Group
Added Kyncl: “Music’s worth, energy, and ubiquity are among the many many causes I made a decision to hitch WMG and lead the following part of our evolution.
“The foundations of this firm are sturdy, and our addressable market is repeatedly rising. We’re excited to drive new monetization alternatives by way of our investments in new artists and songwriters, our catalog, and our international growth.”
“Our outcomes mirror our resilience and operational self-discipline within the face of macroeconomic headwinds, in addition to the affect of the additional week within the prior-year quarter.”
Eric Levin, Warner Music Group
Eric Levin, CFO, Warner Music Group, added: “Our outcomes mirror our resilience and operational self-discipline within the face of macroeconomic headwinds, in addition to the affect of the additional week within the prior-year quarter.
“Our continued concentrate on effectivity enabled us to ship sturdy working and free money stream development, even whereas sure income strains got here below stress. We’re captivated with our launch schedule for the second half of the fiscal 12 months, which can characteristic superb music from a few of our greatest artists.”
