• ABOUT
    • Contact
    • The Team
    • Editorial Calendar
    • Events
    • FAQ
    • Use & Privacy Policy
  • ADVERTISE
  • ROWFAX
  • THE SPORTS CREDENTIAL
  • JOB LISTINGS
MusicRow.com
  • CALENDARS
    • Album/EP Releases
    • Single/Track Releases
    • Industry Events
  • OBITS
  • CHARTS
    • Radio Chart (Current)
    • Radio Chart (Archives)
    • No. 1 Challenge Coin
    • Songwriter Chart (Current)
    • Songwriter Chart (Archives)
  • REVIEWS
  • MY STORY
  • NEWSLETTER
    • Newsletter (Current)
    • SIGN UP (FREE!)
    • Newsletter (Archives)
  • SUBSCRIBE
  • STORE
  • Search
  • Menu Menu

Warner Music Group Releases Second Quarter Fiscal Numbers

May 7, 2020/by Lorie Hollabaugh

Warner Music Group released its earning report for the end of the second quarter and while total revenue was down compared to the same quarter last year, streaming and digital revenues were up.

“We had a tough comparison with an especially strong Q2 in 2019, so I’m pleased that we’ve matched our excellent performance in the prior-year quarter, due in large part to an 11% increase in Recorded Music streaming revenue and a 17% increase in Music Publishing digital revenue. That’s a tremendous achievement, especially coming on the heels of Q1, when we achieved the highest quarterly revenue in our sixteen-year history as a standalone company,” said Steve Cooper, Warner Music Group’s CEO. “In these unprecedented times, we’re determined to protect the livelihoods of our artists, our songwriters and our people. We’re confident that our distinctive combination of creative innovation and financial discipline will help us weather this storm and emerge stronger, better and more agile than ever.”

Points from the report included:

  • Digital revenue grew 5.7% (or 7.4% in constant currency)
  • Total revenue was down 1.7% compared to the prior year-quarter (or flat in constant currency)
  • Net loss was $74 million versus net income of $67 million in the prior-year quarter
  • OIBDA was $12 million versus $191 million in the prior-year quarter

Growth in Recorded Music digital revenue and Music Publishing digital, synchronization and mechanical revenue was more than offset by a decline in Recorded Music physical and artist services and expanded-rights revenue and in Music Publishing performance revenue.  Recorded Music licensing revenue was flat.  The revenue decline was primarily due to a lighter release schedule, some COVID-related business disruption and foreign exchange rates in the current quarter and one-time impact of a digital streaming license in the prior-year quarter.  Digital revenue grew 5.7% (or 7.4% in constant currency), and represented 65.3% of total revenue, compared to 60.6% in the prior-year quarter.

The company showed an operating loss at $49 million compared to operating income of $122 million in the prior-year quarter. Operating income before depreciation and amortization (OIBDA) was $12 million, down 93.7% from $191 million in the prior-year quarter and OIBDA margin decreased 16.4 percentage points to 1.1% from 17.5% in the prior-year quarter.  The decrease in operating income, OIBDA and OIBDA margin was primarily the result of higher variable compensation expense of $164 million related to the Company’s long-term incentive plan, as well as the margin impact of COVID-related business disruption and one-time non-cash charges of $13 million, partially offset by revenue mix.  Adjusted OIBDA decreased 78.4% to $43 million and Adjusted OIBDA margin decreased 14.3 percentage points to 4.0% from 18.3% due to higher variable compensation expense and the margin impact of COVID-related business disruption, partially offset by revenue mix.

Recorded Music revenue was down 2.8% (or 1.5% in constant currency).  The revenue decline was primarily due to a lighter release schedule, some COVID-related business disruption and foreign exchange rates in the current quarter and the one-time impact of a digital streaming license in the prior-year quarter.  Growth in digital revenue was more than offset by declines in physical and artist services and expanded-rights revenue.  Licensing revenue was flat.  Digital revenue growth reflects the continuing shift to streaming and was impacted by a one-time digital streaming license in the prior year-quarter.  The decline in artist services and expanded-rights revenue was due to the timing of tour schedules compared to the prior-year quarter, tour postponements and lower merchandise revenue resulting from COVID.  The decline in physical revenue reflects industry trends and a lighter release schedule as well as lower physical sales due to the impact of COVID.

  • Author
  • Recent Posts
Lorie Hollabaugh
Lorie Hollabaugh
Hollabaugh, a staff writer at MusicRow magazine, has over 20 years of music business experience and has written for publications including American Profile, CMA Close Up, Nashville Arts And Entertainment, The Boot and Country Weekly. She has a Broadcast Journalism and Speech Communication degree from Texas Christian University, (go Horned Frogs), and welcomes your feedback or story ideas at [email protected].
Lorie Hollabaugh
Latest posts by Lorie Hollabaugh (see all)
  • Frank Ray Celebrates Hispanic Heritage Month With New Spanish EP - September 22, 2023
  • Dalton Dover Delivers New Project, ‘Never Giving Up On That’ - September 22, 2023
  • Kane Brown Releases Phil Collins-Inspired Track ‘I Can Feel It’ - September 22, 2023
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • Share by Mail
https://musicrow.com/wp-content/uploads/2018/03/Warner-Music-Group-logo-1.png 384 570 Lorie Hollabaugh https://musicrow.com/wp-content/uploads/2019/03/MusicRow-header-logo-Mar19B.png Lorie Hollabaugh2020-05-07 11:53:492020-10-08 15:05:09Warner Music Group Releases Second Quarter Fiscal Numbers

RECENT NEWS

  • Parker McCollum Celebrates Three No. 1 Hits September 22, 2023
  • Frank Ray Celebrates Hispanic Heritage Month With New Spanish EP September 22, 2023
  • Cody Johnson Announces Third Studio Album ‘Leather’ September 22, 2023
  • Dalton Dover Delivers New Project, ‘Never Giving Up On That’ September 22, 2023
  • Kane Brown Releases Phil Collins-Inspired Track ‘I Can Feel It’ September 22, 2023
  • Widely Admired Bass Player Dave Roe Passes September 22, 2023
  • Zach Bryan Releases Five-Track ‘Boys Of Faith’ EP September 22, 2023
  • Dustin Lynch To Kick Off His ‘Killed The Cowboy Tour’ In April September 22, 2023
  • Bill Anderson Named First Recipient Of Dr. David Godbold Lifetime Achievement Award September 22, 2023
  • Morgan Wallen Takes ‘Everything I Love’ To Top Of MusicRow Chart September 22, 2023
  • Megan Moroney Drops Deluxe Edition Of Debut Album ‘Lucky’ September 22, 2023
  • Oliver Anthony Signs With UTA September 22, 2023
  • DISClaimer Single Reviews: ‘A Lot To Fall In Love With’ This Americana Week September 21, 2023
  • CMA Foundation Honors Music Teachers Of Excellence September 21, 2023
  • Industry Ink: Stephen Wilson Jr., Anne Wilson, BMI, ACM September 21, 2023

Like Us on Facebook

Follow Us on Twitter

Tweets by MusicRow
© 2023 Music Row Enterprises, LLC – All rights reserved.
  • Facebook
  • Twitter
  • Instagram
Scroll to top