WMG Corp. Q2 Results: Double-Digit Revenue Growth From Recorded Music, Music Publishing

Warner Music Group Corp. announced its second-quarter financial results for the period ended March 31, 2022.

WMG’s second-quarter financial results saw a 10.1% increase in revenue, driven by digital revenue growth of 8.3% across Recorded Music and Music Publishing. Total streaming revenue increased 9.0%, driven by growth across Recorded Music and Music Publishing, including revenue from emerging streaming platforms.

Digital revenue represented 67.7% of total revenue in the quarter, compared to 68.8% in the prior-year quarter. The decrease in digital revenue as a percentage of total revenue is due to the partial recovery of artist services and expanded-rights revenue, which was impacted by COVID in the prior-year quarter and increased 19.5% in the quarter, as well as the continued growth in Recorded Music licensing and Music Publishing synchronization revenue.

Revenue increases in the quarter were also driven by growth in Recorded Music physical revenue and Music Publishing performance and mechanical revenue.

“Warner Music Group’s unique combination of scale and agility gives us, our artists, and our songwriters an edge in music’s ever-expanding universe of opportunity. We continue to build our unparalleled artist development expertise, our differentiated approach to global expansion, and our ground-breaking commitment to innovation at the intersection of music, gaming, social and fitness,” says Steve Cooper, CEO, Warner Music Group. “We’re equally excited about the amazing new releases we have lined up for the rest of the year, and the possibilities on the horizon.”

Financial Highlights:
Double-Digit Revenue Growth Highlighting Strong Fundamentals
Healthy Streaming Performance Driven by Growth in Traditional and Emerging Streaming Platforms
Strong Margins Despite Continued Recovery in Lower-Margin Artist Services Revenue
Continued Momentum in Music Publishing with Double-Digit Revenue Growth and Margin Improvement

For the three months ended March 31, 2022:
Total revenue grew 10% or 13% in constant currency
Digital revenue grew 8% or 11% in constant currency
Net income was $92 million versus $117 million in the prior-year quarter
OIBDA increased 12% to $255 million versus $228 million in the prior-year quarter
Adjusted OIBDA increased 7% to $274 million versus $255 million in the prior-year quarter
Adjusted EBITDA increased 5% to $282 million versus $268 million in the prior-year quarter