WMG Corp. Q3 Results: Accelerated Streaming, New Music Push Revenue Growth

Warner Music Group Corp. announced today (Aug. 3) its third-quarter financial results for the period ended June 30, 2021.

WMG’s third-quarter financial results saw a 27% revenue growth, fueled by streaming acceleration and partial recovery in certain COVID-affected areas. Powered by new music, recorded music Streaming revenue grew 27%.

“We’re proud of everything we’ve accomplished during our first year as a publicly traded company,” says Steve Cooper, CEO, Warner Music Group. “During a very challenging time, we’ve focused on investing in our core business and building an array of innovative growth opportunities. Outstanding releases from our artists and songwriters, coupled with imaginative execution by our operators, delivered excellent results in the third quarter. We’re looking forward to wrapping up our fiscal year with a slate of great new releases from established and emerging stars.”

“The third quarter was highlighted by impressive streaming numbers, recovery in several areas that had been negatively impacted by COVID, and strong operating leverage that drove margin expansion,” Eric Levin, CFO, Warner Music Group explains. “We continue to create value through our wide-ranging services to artists and songwriters, to drive shareholder return through our disciplined allocation of capital, and to deliver long-term growth through our digital-first approach to business.”

Financial Highlights:

• Total Revenue Grew 27% Propelled by Streaming Acceleration, Partial Recovery in Certain COVID-Impacted Areas
• Recorded Music Streaming Revenue Grew 27% Powered by New Music
• Robust Growth in Revenue from Emerging Streaming Platforms
• Margin Expansion, High Operating Cash Flow Conversion Driven by Strong Operating Leverage

For the three months ended June 30, 2021:

• Total revenue grew 33% or 27% in constant currency
• Digital revenue grew 29% or 23% in constant currency
• Net income was $61 million versus net loss of $519 million in the prior-year quarter
• OIBDA (Operating Income Before Depreciation and Amortization) was income of $241 million versus a loss of $371 million in the prior-year quarter
• Adjusted OIBDA increased 58% to $263 million versus $166 million in the prior-year quarter
• Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 49% to $282 million versus $189 million in the prior-year quarter

Read the complete report here.