Thanks to popular releases by Cardi B, Ed Sheeran, Meek Mill, K-Pop group TWICE and the unstoppable “The Greatest Showman” soundtrack, Warner Music Group is having a strong Q2.
For the quarter ending on March 31, the company announced a 13.2% increase in total revenue to $1.09 billion, up from $960 million during the same quarter in the previous year. Net income was $67 million compared to a net loss of $1 million in the prior-year quarter. Operating income was $122 million, compared to $83 million the prior year. OIBDA was $191 million, up 25.7% from $152 million in the prior-year quarter.
WMG’s recorded-music operation was up 67.5% to $134 million from $80 million in Q2 the prior year. Of that, streaming revenues grew 29.4% over a year ago to $537 million. More than half of the company’s recorded-music revenues how come from streaming, contributing to digital revenue’s 60.6% share of total revenue.
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Publishing, however, saw a small decline — to the tune of $16 million or 9.2 percent. Warner/Chappell saw lower activity in synchs, according to the report, and was also impacted by lower performance and mechanical revenue due to the ongoing shift to streaming as well as less of admin rights of certain catalogs, which the report does not specify.
Looking at the prior six months, the picture is a little rosier, with modest gains on the publishing side.
“Our second-quarter results were strong,” said Warner Music Group CEO Steve Cooper. “Our sustained investment in our artists and songwriters, our artist services business and our world-class operators, are delivering great results.”
Added Eric Levin, Warner Music Group’s executive vice president and CFO: “Revenue and OIBDA were both up double-digits. Our cash position remains strong, with $470 million on the balance sheet at quarter-end.”