Warner Music Group Boosts Revenue by 23%

In its most recent earnings results, Warner Music Group said that its recorded-music division saw an annual streaming growth of 22.8% for the financial year ending September 30, 2019.

The company saw streaming revenues for the year of $2.13 billion, up from $1.73 billion the previous year. For the fiscal fourth quarter, streaming revenues were $550 million, up 18% from 2018.

Streaming accounted for over 55% of the company’s recorded music revenue for the year, which was up 14% to reached $3.8 billion. Total revenue for the full year increased 11.7% (14.7% at constant currency) to $4.48 billion.

On the earnings call, CEO Steve Cooper cited Ed Sheeran’s “No. Collaborations” and releases from Cardi B, Meek Mill, A Boogie Wid Da Hoodie, Mariya Takeuchi, Slipknot and Mac Miller as the quarter’s biggest releases, followed by Dan + Shay, Lizzo, Coldplay, the Highwomen and 21 Pilots. He singled out the group’s Atlantic Records, Elektra Records and Parlophone.

“We are passionate champions for our recording artists and songwriters and work tirelessly to help them build long-term global careers,” he said. “Their talent and our focus and dedication made for an excellent fiscal year, and we’re excited by the multitude of growth opportunities which lie ahead in 2020 and beyond.”

For the quarter, the music group’s revenue was up 8.2% to $1.12 billion. For the year, digital revenue grew 16% and physical sales were down 12.5% over last year. Recorded music operating income was $439 million, up from $307 million. Warner Chappell’s music publishing revenues dropped 2% year-on-year with $643 million as the company’s new leadership under CEO Guy Moot and COO Carianne Marshall. “We are already seeing signs of gathering momentum,” Cooper said.

Source: Variety