WMG Corp. Q4 Results: Total Revenue Sees Double-Digit Increase For 2022 Fiscal Year

Warner Music Group Corp. has announced its fourth-quarter and full-year financial results for the periods ended Sept. 30, 2022.

For the fourth quarter, WMG revenue was up 8.8%, which was driven by digital revenue growth of 6.8% across Recorded Music and Music Publishing. Total streaming revenue increased 3.5%, primarily driven by growth in Music Publishing streaming revenue of 29.8%. Recorded Music streaming revenue decreased by 0.4%. Digital revenue represented 66.1% of total revenue in the quarter, compared to 67.3% in the prior-year quarter.

When looking at the fiscal year as a whole, total revenue increased 11.7%, and was driven by digital revenue growth of 9.2% across Recorded Music and Music Publishing. Total streaming revenue increased 9.1%, due to growth across Recorded Music and Music Publishing. Recorded Music streaming revenue increased by 6.3%, while Music Publishing streaming revenue increased by 28.9%, which includes a benefit of $20 million resulting from the ruling by the Copyright Royalty Board in Phonorecords III. Digital revenue represented 65.3% of total revenue, compared to 66.8% in the prior year. Revenue increases in the year were also attributed to growth in Recorded Music licensing and physical revenue, as well as Music Publishing performance, synchronization and mechanical revenue.

“Our strong fourth quarter and full year results were driven by our talented artists, songwriters, and teams, across a wide range of genres, geographies, and generations,” explains Steve Cooper, CEO, Warner Music Group. “Against the backdrop of a challenging macro environment, we once again proved music’s resilience, with new commercial opportunities emerging all the time. We’re very well positioned for long-term creative success, and continued top and bottom line growth. We’re excited to have Robert Kyncl joining next year as WMG’s new CEO, as we enter the next dynamic phase of our evolution.”

“We’ve delivered double-digit revenue growth on a constant currency basis and robust cash flow, driven by excellent operating performance across the company. The momentum in our business is strong, underpinned by global subscriber growth, subscription price increases, and the expansion of emerging platforms,” adds Eric Levin, CFO, Warner Music Group. “As we look ahead, we’re excited to share amazing releases from the world’s hottest artists, as well as innovative tech collaborations that will strengthen our position at the intersection of music, film, TV, social media, fitness, and gaming.”

Financial Highlights:
– Strong Quarterly Performance Highlighted by Growth across All Revenue Lines and Margin Expansion in Constant Currency
– Solid Double-Digit Growth in Adjusted OIBDA and Adjusted EBITDA for the Quarter and Full Year
– Continued Momentum in Music Publishing with Double-Digit Revenue Growth
– Robust Operating Cash Flow Growth Which Outperformed Full-Year Expectations

For the three months ended Sept. 30, 2022:
– Total revenue grew 9% or 16% in constant currency
– Digital revenue grew 7% or 12% in constant currency
– Net income was $150 million versus $30 million in the prior-year quarter
– OIBDA increased 37% to $245 million versus $179 million in the prior-year quarter or 52% in constant currency
– Adjusted OIBDA increased 22% to $265 million versus $218 million in the prior-year quarter or 33% in constant currency
– Adjusted EBITDA increased 16% to $276 million versus $237 million in the prior-year quarter
– Cash provided by operating activities increased 78% to $406 million versus $228 million in the prior-year quarter

For the twelve months ended Sept. 30, 2022:
– Total revenue grew 12% or 16% in constant currency
– Digital revenue grew 9% or 13% in constant currency
– Net income was $555 million versus $307 million in the prior year
– OIBDA increased 15% to $1,053 million versus $915 million in the prior year or 21% in constant currency
– Adjusted OIBDA increased 13% to $1,149 million versus $1,018 million in the prior year or 18% in constant currency
– Adjusted EBITDA increased 10% to $1,196 million versus $1,090 million in the prior year
– Cash provided by operating activities increased 16% to $742 million versus $638 million in the prior year