Warner posts $1.5bn in calendar Q3 revenues, up 16% YoY; recorded music streaming revenues grow 4.7% YoY

Warner Music Corporation generated total revenue of US$1.497 billion in the calendar quarter 3 (three months through September) of 2022.

That number – which includes recorded music, music publishing and other activities – has grown 16% annually in constant currency, the company told investors on Tuesday (November 22).

The music company revealed these numbers as part of its scheduled Q3 (financial quarter) financial results.

Warner Music CorporationCEO is about to leave Steve Cooper “Amid the challenging macro environment, we have once again demonstrated the resilience of music, with new commercial opportunities always emerging,” said WMG investors in a statement. “.

A deeper dive into Warner’s profile reveals some of the finer details about the performance of the major music company’s recorded and music publishing operations:

Recorded music

Recorded Music revenue has increased 13.1% annually in constant currency to 1.244 billion USD in the Q3 calendar.

WMG attributed this increase to the growth in artist services and expansion rights revenue 33.3% annually in constant currency, “reflecting an increase in concert sales and promotion revenue”.

Warner Recorded Music streaming revenue has increased 4.7% annual in calendar currency unchanged from Q3 to 774 million USD (see below).

WMG says this growth comes “as a result of continued growth in subscription revenue, offset by a market-related decline in ad-supported revenue, the impact of exchange rates and the impact of a new deal with one of the [our] digital partners”.

(This ‘new deal’ has now impacted Warner’s results for four consecutive quarters. Essentially, from what MBW can tell, the company has reached a licensing agreement with a technical partner. specific numbers in 2021. This resulted in a negative year-over-year impact on their streaming revenue figures since then.With those four quarters now complete, the full-year impact should be negligible. to future quarters at WMG.)

Adjusted for the annual impact of this ‘new deal’, Warner says its Recorded Music streaming revenue has increased 10.4% annual with currency unchanged during the third calendar quarter.

Meanwhile, WMG generates physical revenue of 123 million USD in the third quarter of the calendar year (see below), fell 3.1% annually (but up 6% in constant currency).

Warner said this was “primarily due to exchange rate effects, which offset higher vinyl sales and strong performance in Japan”.

Warner’s licensing revenue hits $87 million in the third quarter of the calendar year, increased 38.1% annual in constant currency, mainly due to “higher broadcasting, synchronization and other fees, which are partially offset by the impact of exchange rates,” according to WMG.

Warner’s major record sellers in the third quarter included Ed Sheeran, Jack Harlow, Dua Lipa and Lizzo.

Music publishing

Warner’s global music publishing division – Music Warner Chappell – increase its revenue by 32.3% annual in the 3rd calendar quarter with the currency unchanged $254 million (see below).

Warner says music publishing streaming sales increase 37% in currency was unchanged, and this growth reflects “the continued growth in streaming services and the timing of new digital transactions.”

WARNER Q3 SCHEDULE SUMMARY (% CURRENCY unchanged):

• Warner Music Group’s total revenue has increased 16% annual arrive 1.497 billion USD in the Q3 calendar;
• Recorded music sales have increased 13.1% annually up to 1.244 billion USD.
• In that figure, music is recorded streaming sales increase 4.7% annually arrive 774 million USD.
• Music publishing revenue – at Warner Chappell Music – has increased 32.3% annual arrive $254 million.

WMG: POSSIBILITY OF PROFIT IN Q3

• WMG’s net income stands at $150 million won in the third quarter of the calendar year, compared to $30 millions in the previous quarter.
• The company’s quarterly adjusted OIBDA adds up 33% YoY to 265 million USD.
• And its adjusted EBITDA fell 16% (Not constant currency) to 276 million USD fight with $237 million in the previous quarter.

In a statement sent to investors today, outgoing Warner Music Group CEO Steve Cooper said: “Our strong fourth quarter and full year results are thanks to our artists. Our artists, musicians, and talented team span different genres, geographies and generations. .

“Our strong fourth-quarter and full-year results are thanks to our talented artists, musicians and pools, across different genres, geographies and generations.”

Steve Cooper, Warner Music Corporation

He added: “Amid a challenging macro environment, we have once again demonstrated the resilience of music, with new commercial opportunities always emerging. We are in a very good position to achieve lasting creative success and continue leading and bottom line profitable growth.

“We are delighted to have Robert Kyncl joining next year as the new CEO of WMG, as we enter the next dynamic phase of our development.”

“The momentum in our business is strong, underpinned by global subscriber growth, rising subscription prices and the expansion of emerging platforms.”

Eric Levin, Warner Band

Eric Levin, Chief Financial Officer, Warner Music Group, said: “We delivered double-digit revenue growth on a solid currency basis and strong cash flow, driven by operating performance. excellence throughout the company

“The momentum in our business is strong, underpinned by global subscriber growth, rising subscription prices and the expansion of emerging platforms.

“As we look ahead, we are excited to share great releases from the world’s most famous artists, as well as cutting-edge technology collaborations that will strengthen our position. at the intersection of music, movies, TV, social media, fitness and games.”

Global Music Business