WMG Corp. Q1 Results: Music Publishing Shows Double-Digit Revenue Growth

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Warner Music Group Corp. has announced its first-quarter financial results for the period ended December 31, 2022.

“Music’s value, power, and ubiquity are among the many reasons I decided to join WMG and lead the next phase of our evolution,” shares Robert Kyncl, CEO. “As we navigate a challenging business environment, we expect to have a strong release schedule in the second half of 2023 while managing our costs throughout. The foundations of this company are strong, and our addressable market is continuously growing. We are excited to drive new monetization opportunities through our investments in new artists and songwriters, our catalog, and our global expansion.”

“Our results reflect our resilience and operational discipline in the face of macroeconomic headwinds, as well as the impact of the extra week in the prior-year quarter,” adds Eric Levin, CFO, Warner Music Group. “Our continued focus on efficiency enabled us to deliver strong operating and free cash flow growth, even while certain revenue lines came under pressure. We are enthusiastic about our release schedule for the second half of the fiscal year, which will feature amazing music from some of our biggest artists.”

Financial Highlights:
– Underlying Growth in Total Streaming Revenue Despite a Challenged Macroeconomic
– Environment and the Impact of an Additional Week in the Prior-Year Quarter
– Continued Momentum in Music Publishing with Double-Digit Revenue Growth
– Adjusted OIBDA Margin Improvement Underpinned by Disciplined Operating Performance
– Robust Growth in Operating and Free Cash Flow with Strong Conversion

For the three months ended December 31, 2022:
– Total revenue decreased 8% or 3% in constant currency
– Digital revenue decreased 5% or 1% in constant currency
– Net income was $124 million versus $188 million in the prior-year quarter
– OIBDA increased 9% to $349 million versus $320 million in the prior-year quarter or 16% in constant currency
– Adjusted OIBDA decreased 6% to $335 million versus $355 million in the prior-year quarter or was flat in constant currency
– Cash provided by operating activities increased 62% to $209 million versus $129 million in the prior-year quarter

Read the full report here.

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