Warner Music Group just reported quarterly recorded music revenue of more than $ 1 billion for the third consecutive quarter.
Released today (August 3), WMG’s tax results for the three months to end-June (its fiscal Q3, but calendar Q2), show that the company’s quarterly recorded music revenues – including streaming, digital and physical sales, as well as ancillary revenue – reached $ 1.152 billion, up 34% year-on-year (or 27.6% at constant exchange rates).
In the previous quarter – the three months to the end of March (WMG fiscal Q2 but calendar Q1) – the company generated recorded music revenue of $ 1.059 billion, up 16.8% (or 12.9% in constant currency).
Meanwhile, in the fourth quarter of 2020 (WMG’s fiscal Q1), the company’s recorded music revenue grew 4.5% at constant exchange rate year-on-year to $ 1.16 billion.
WMG’s recorded music figure in the calendar’s second quarter of 2021 was $ 781 million from streaming, which was up $ 192 million, or 32.6% (27.2% in constant currency), compared to $ 589 million in the third quarter of 2020.
WMG attributed this growth to the “strong performance of new releases and postponed releases,” as well as accelerated revenue growth from emerging streaming platforms such as Facebook, TikTok and Peloton.
Physical income was also a significant contributor to Warner’s recorded music tally, which rose 154.9% (or 136.4% in constant currency) to $ 130 million, from $ 51 million in the same quarter. in 2020.
WMG says this growth was propelled by growing demand for vinyl products and increased retail sales as businesses began to recover from the disruption caused by COVID-19.
Elsewhere, WMG’s artist services and extended rights revenue grew 7.3% (or 0.8% in constant currency) on a reported basis, from $ 124 million in Q2 2020 to $ 133 million in the second quarter of 2021.
This growth reflects an increase in direct-to-consumer merchandising revenue, partially offset by the impact of COVID disruptions on concert tours and live events, according to WMG.
Top sellers for WMG during the quarter included Dua Lipa, Cardi B, Ed Sheeran, Ava Max and Masked Wolf.
WMG’s music publishing business – Warner Chappell Music – increased revenues by 26.8% (or 21.2% in constant currencies) to generate $ 189 million in the second quarter of 2021.
Warner Chappell Music’s revenue growth was primarily driven by an increase in digital revenue, which grew 25.6% (or 20.2% in constant currencies) to $ 113 million in the second quarter of 2021.
Digital revenue represented 59.8% of total music publishing revenue compared to 60.4% in the previous year quarter.
Elsewhere in Warner Chappell’s revenue tally, WMG reports that the publisher’s sync business was its second largest source of revenue, with revenue dropping from $ 22 million in Q1 2020 to $ 34 million in second quarter 2021, due to “growth in film and commercial revenue,” according to WMG.
Performance revenue of $ 27 million remained stable, blamed on the continued impact of COVID on bars, restaurants, concerts and live events.
Steve Cooper, CEO of Warner Music Group, said: âWe are proud of all that we have accomplished in our first year as a publicly traded company.
âDuring a very difficult time, we focused on investing in our core business and creating a range of innovative growth opportunities.
âThe exceptional releases by our artists and songwriters, coupled with the imaginative performance of our operators, produced excellent results in the third quarter.
âWe look forward to ending our fiscal year with a list of outstanding new releases from established and emerging stars. “
âExceptional releases by our artists and songwriters, coupled with imaginative performance by our operators, produced excellent results in the third quarter. “
Steve Cooper, Warner Music Group
Eric Levin, CFO, Warner Music Group added: âThe third quarter was marked by impressive streaming numbers, a recovery in several areas that had been negatively impacted by COVID and strong operating leverage which led to the expansion of margins.
âWe continue to create value through our extensive services to artists and songwriters, generate shareholder return through our disciplined allocation of capital, and generate long-term growth through our focused business approach. digital. “Music trade around the world