WMG Corp. Q1 Results: Continued Streaming Growth, Return Of Music Publishing Power

Warner Music Group Corp. (WMG) has announced its first-quarter financial results for the period ended Dec. 31, 2021.

WMG’s first-quarter financial results saw a 20.9% increase in revenue, driven mostly by digital revenue growth (up 21.5%) from recorded music and music publishing.

Recorded Music revenue was up 19.4% due to continued growth in streaming, the company’s largest source of revenue. Streaming revenue grew 20.8%, in part, from releases by major artists such as Ed Sheeran, Coldplay, Dua Lipa and Silk Sonic.

Music publishing revenue increased 30.9%. Synchronization, performance, and mechanical revenue each saw increases due to the ongoing recovery of businesses from COVID-19 disruption.

“Hitting an all-time high in our 18 years as a standalone company is proof that we’ve never been stronger. At the same time, we’ve never had so much opportunity ahead of us,” shares Steve Cooper, CEO, Warner Music Group. “Our creative expertise, global agility, and willingness to experiment set us apart from the competition and solidify our important role across the entire music ecosystem. In the coming year, we look forward to welcoming back huge superstars, breaking new artists and songwriters, and seeking out more innovative ways to bring more music to more people in more places.”

Lou Dickler, Acting CFO, Warner Music Group adds: “The strength and diversity of our revenue streams coupled with our operational efficiency drove margin growth, even as lower-margin revenue lines recovered. We’re committed to making sustained investments in our core business, and to taking pioneering steps that position WMG for the next wave of growth, all with a financially disciplined, ROI-focused perspective.”

Financial Highlights

• Generated Record Revenue Underpinned by Strength across Recorded Music and Music Publishing
• Robust Streaming Performance Driven by Growth across Traditional and Emerging Streaming Platforms
• Delivered Margin Improvement and Double-Digit Growth in Adjusted OIBDA and Adjusted EBITDA Despite Strong Recovery in Lower-Margin Revenue Streams Impacted by COVID
• Completed Acquisitions of 300 Entertainment and David Bowie’s Music Publishing Catalog

For the three months ended Dec. 31, 2021

• Total revenue grew 21% or 22% in constant currency
• Digital revenue grew 21% or 22% in constant currency
• Net income was $188 million versus $99 million in the prior-year quarter
• OIBDA increased 20% to $320 million versus $267 million in the prior-year quarter
• Adjusted OIBDA increased 26% to $355 million versus $282 million in the prior-year quarter
• Adjusted EBITDA increased 31% to $389 million versus $297 million in the prior-year quarter

Read the full report here.