WMG Corp. Q4 Results: Streaming Drives Double-Digit Digital Revenue Growth

Warner Music Group Corp. has announced its fourth-quarter and full-year financial results for the periods ended Sept. 30, 2021.

WMG’s fourth-quarter and full-year financial results saw double-digit digital revenue growth driven by streaming. The label has also begun to see some recovery from COVID by way of artist services and physical revenue.

“Music is essential to billions of people across the globe. But now, more than ever, great talent needs help to cut through the noise. By delivering for new artists and songwriters, returning superstars, and global legends, we’ve also delivered outstanding results in 2021,” says Steve Cooper, CEO, Warner Music Group. “Looking to 2022, we’re excited to release incredible new music from the world’s hottest artists and most influential songwriters. We’re also planning innovative moves and collaborations that will strengthen our leadership position across a vast universe of opportunities, in both the digital and physical worlds.”

“Our strong fourth-quarter results put an exclamation point on an outstanding year,” adds Lou Dickler, acting CFO, Warner Music Group. “Even as certain revenue was impacted by COVID, the strength and resilience of our music propelled us to double-digit revenue growth and margin expansion in 2021. As the possibilities for music continue to evolve, we remain focused on delivering shareholder value through our financially disciplined investment strategy and positioning ourselves for the next wave of growth.”

Financial Highlights:

• Continued Momentum Across Traditional and Emerging Streaming Platforms Drove Double-Digit
• Digital Revenue Growth for the Quarter and Full Year
• Recovery in COVID-Impacted Areas Led by Strong Growth in Artist Services and Physical Revenue
• Delivered Margin Improvement and Double-Digit Growth in Adjusted OIBDA and Adjusted EBITDA
• Robust Free Cash Flow Conversion and Growth Underpinned by Strong Operating Leverage and
• Financially Disciplined Investments

For the three months ended Sept. 30, 2021:

• Total revenue grew 22% or 21% in constant currency
• Digital revenue grew 19% or 18% in constant currency
• Net income was $30 million versus $1 million in the prior-year quarter
• OIBDA increased 15% to $179 million versus $155 million in the prior-year quarter
• Adjusted OIBDA increased 25% to $218 million versus $174 million in the prior-year quarter
• Adjusted EBITDA increased 34% to $237 million versus $177 million in the prior-year quarter

For the twelve months ended Sept. 30, 2021:

• Total revenue grew 19% or 15% in constant currency
• Digital revenue grew 22% or 19% in constant currency
• Net income was $307 million versus net loss of $470 million in the prior year
• OIBDA was $915 million versus $32 million in the prior year
• Adjusted OIBDA increased 29% to $1,018 million versus $790 million in the prior year
• Adjusted EBITDA increased 30% to $1,090 million versus $837 million in the prior year