Warner Music Group generated total revenue of $1.497 billion in calendar third quarter (the three months through the end of September) 2022.
That number — which includes recorded music, music publishing and other activities — rose 16% year on year In constant currency, the company notified investors on Tuesday (November 22).
The music company disclosed these numbers as part of its calendar of financial results for the third quarter (FQ4).
“Against the backdrop of a challenging macro environment, we have once again demonstrated the resilience of music, with new business opportunities emerging all the time,” Steve Cooper, the outgoing CEO of Warner Music Group, told WMG investors in a statement.
Digging into the Warner files reveals some subtleties about the performance of the major music company’s music publishing and recorded music operations:
Recorded music revenues soared 13.1% year on year in a fixed currency 1.244 billion dollars In the Q3 calendar.
WMG said the increase was due to artist services and expanded rights revenue growth at 33.3% year on year At constant currency, it “reflects an increase in commercial merchandising and concert revenue”.
Warner Recorded Music flow Revenue soared 4.7% year In a fixed currency calendar Q3 to 774 million dollars (see below).
WMG said that this growth was “the result of continued growth in subscription revenue, offset by a market-related slowdown in ad-supported revenue, the impact of exchange rates and the impact of a new deal with one of [our] Digital Partners.
(That “new deal” has now trailed Warner’s results for four consecutive quarters. Basically, from what MBW can tell, the company entered into a licensing agreement with a certain digital partner in 2021 that resulted in a negative year-over-year impact on its streaming revenue numbers. Since then Then. With those four quarters now completed, the annualized impact will not affect future quarters at WMG.)
Adjusted for the annual impact of this “new deal,” Warner says revenue from streaming recorded music is up. 10.4% year In a fixed calendar Q3 currency.
Meanwhile, WMG generated physical revenue from $123 million In the Q3 calendar (see below), that was down 3.1% on an annual basis (But up 6% in a fixed currency).
Warner says this is primarily due to the effect of exchange rates, which offset higher vinyl sales and a strong performance in Japan.
Warner Bros. licensing revenue reached $87 million In calendar Q3 and above 38.1% year in constant currency, mainly due to “rising fees for broadcasting, synchronization, and other activities, which are partially offset by the impact of exchange rates,” according to WMG.
Top Warner Record Music sellers in the third quarter calendar included Ed Sheeran, Jack Harlow, Dua Lipa and Lizzo.
Warner’s world music publishing division – Warner Chappell Music – increased turnover by 32.3% year In the Q3 calendar in constant currency to $254 million (see below).
Warner says that publish music flow Increase revenue 37% in stablecoin and that this growth reflects “the continued growth in streaming services and the timing of new digital deals”.
WARNER’S CALENDAR Q3 IN SUMMARY (% in constant currency):
- Warner Music Group’s overall revenue increased 16% year to me $1.497 billion in calendar Q3;
- Recorded music revenues soared 13.1% year on year to $1.244 billion.
- Within this number, recorded music flow Revenue soared 4.7% year on year to me 774 million dollars.
- Music publishing revenue soared – at Warner Chappell Music – 32.3% year to me $254 million.
WMG: Profitability in the calendar Q3
- WMG’s net income ceased at $150 million In the third quarter of the calendar, vs $30 million in the previous quarter.
- The company’s quarterly adjusted OIBDA increased by 33% annually to 265 million USD.
- Its adjusted earnings before interest, taxes, depreciation and amortization decreased by 16% (Not fixed currency) to $276 million Reverse $237 million in the previous quarter.
“Our fourth quarter and full year results were driven by talented artists, songwriters and bands, across a broad range of genres, geographies and generations,” Steve Cooper, outgoing CEO of Warner Music Group, said in a statement to investors today.
“Strong fourth quarter and full year results were driven by our talented artists, songwriters and teams across a wide range of genres, geographies and generations.”
Steve Cooper, Warner Music Group
He added, “In a challenging macro environment, we have once again demonstrated the resilience of music, with new business opportunities emerging all the time. We are very well positioned for long-term creative success and continued earnings growth.
“We are excited to have Robert Kinkel joining next year as WMG’s new CEO, as we enter the next dynamic phase of our evolution.”
“Momentum in our business is strong, supported by global subscriber growth, increased subscription prices, and expansion of emerging platforms.”
Eric Levine, Warner Music Group
“We delivered double-digit revenue growth on a constant currency basis and strong cash flow, driven by stellar operating performance across the company,” said Eric Levine, Chief Financial Officer, Warner Music Group.
“Momentum in our business is strong, supported by global subscriber growth, increased subscription prices, and expansion of emerging platforms.
“As we look to the future, we’re excited to share amazing releases from the world’s hottest artists, as well as innovative technology collaborations that will cement our position at the intersection of music, film, TV, social media, fitness and gaming.”
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