Warner Music’s revenue grows 16.8% in Q1

In quarter one last year, the company posted a 1.7% loss in revenue compared to the corresponding period in 2019. WMG on Tuesday unveiled the figures for the first three months of the year, which is the company’s second fiscal quarter.

The figure for recorded music revenues includes streaming, digital and physical sales, and ancillary income. Streaming contributed $722m of the total, a 23.2% jump compared to the $586m contribution in the same period last year. The major music rights holder said the surge in streaming revenue was partly driven by “accelerated revenue growth in emerging streaming platforms such as Facebook, TikTok and Peloton”.

Physical music sales grew 25.5% compared to the first three months last year, to reach $118m. The label’s best-selling artists for recorded music in the quarter included Dua Lipa, Michael Bublé, Ed Sheeran, Ava Max and The Yellow Monkey.

In terms of publishing revenue, WMG’s publishing arm Warner Chappell Music generated more than $192m in the first quarter this year, up from last year’s $166m in the same period, which represents a 15.7% increase, or a 11.6% rise in constant currency. Digital revenues contributed the most to the figure, growing by $30m compared to the first quarter last year.

Warner Music Group’s total revenues, including recorded music and publishing, returned more than $1.3bn in the period, representing a 16.7% (12.8% in constant currency) spike.

“Following a strong first quarter, I’m happy to report that our momentum continued in Q2 and our business is stronger than ever,” WMG CEO Stephen Cooper said. “Despite the ongoing pandemic, we generated double-digit revenue growth in both recorded music and music publishing.

“Our success was driven by chart-topping new releases from our incredible artists and songwriters, as well as bold and imaginative execution from our world-class operators. We’re excited about the rest of year, as we have a fantastic slate of new music coming from established superstars and emerging talent.”

WMG executive vice-president and chief financial officer Eric Levin said: “In the second quarter, the continued strength of our core streaming business was bolstered by impressive growth in revenue from emerging streaming platforms, which drove healthy margins and free cash flow. We look forward to delivering long-term value as we continue to invest in culture-shifting talent, innovative technology and dynamic new partnerships.

View the full report here.