Warner Music Group revenue up by 4.6% in Q1

The numbers, announced by the company on 9 May, represent WMG’s company-wide operation across recorded music, publishing and other activities in the first quarter of the new CEO Robert Kyncl’s reign.

Recorded music alone experienced a 2.2% YoY growth in calendar Q1 (fiscal Q2) revenues to $1.143b as streaming recorded music revenues rose 2.2% YoY to $773m.

In the first three months of 2023, total revenue experienced a 2% increase, or 5% when adjusted for currency fluctuations. Digital revenue also showed positive growth, increasing by 1%, or 4% in constant currency. However, net income declined to $37m compared to $92m in the same quarter of the previous year.

OIBDA (operating income before depreciation and amortisation) decreased by 19% to $207 million, indicating some challenges faced by the company. Nonetheless, adjusted OIBDA displayed a positive trend, increasing by 4% to $286m.

Cash from operating activities witnessed a significant decline of 114%, reaching $6m, compared to $44m in the prior-year quarter. 

Looking ahead, WMG will be looking to focus on capitalising on the ongoing success in music publishing and the return of renowned global artists and emerging talents and leverage on these to fuel its growth. Additionally, the company plans to allocate its cost savings towards tech-focused initiatives and expanding its expertise. By investing in technology-driven strategies, WMG aims to drive sustainable long-term success.

“With continued momentum in music publishing, and a more robust schedule that includes the return of worldwide superstars and new artists breaking globally, we are optimistic about the second half of the year,” WMG CEO Robert Kyncl said. “As the music ecosystem continues to evolve and new opportunities arise, our tech-enabled strategy gains even more conviction. We are making proactive investments in artists, songwriters, our team, and technology to ensure sustained growth and long-term success.”

“While macroeconomic, currency, and release slate headwinds continued to impact our revenue this quarter, our fiscal discipline enabled us to deliver solid Adjusted OIBDA growth and margin expansion,” the company's CFO Eric Levin said. “Looking ahead, we will combine our expertise in A&R and marketing with tech innovation to achieve greater efficiency, scale, and growth.”