Warner Music Group (WMG) just reported a very solid first-quarter growth.
Warner Music Group (WMG) recorded substantial profits in the first quarter of its fiscal year, which began in October of 2019 and ended on December 31st.
In an earnings report issued this morning, WMG revealed that total revenue increased by 4.4 percent (5.5 percent in constant currency, which omits losses brought on by currency fluctuations) from the same period in 2018. Similarly, digital revenue grew by 12.6 percent from Q1 2018 (13.5 percent in constant currency), and net income saw a $36 million boost, from $86 million to $122 million.
That is nearly a 42% bump, thanks to a continued surge in streaming-related revenues.
Predictably, WMG’s physical sales declined, while streaming and digital purchases performed well enough to increase recorded music’s overall revenue by 4.1 percent (5.1 percent in constant currency). However, it is worth noting that licensing revenue fell from 2018’s first fiscal quarter; WMG attributed this decline to the “impact of foreign exchange rates and timing.”
Recorded music revenue was reported to have grown “in all regions,” with TWICE, Lizzo, Coldplay, and Ed Sheeran cited as “major sellers.”
WMG also claimed to possess approximately $462 million on-hand, with debts totaling about three billion dollars.
In a statement, WMG CEO Steve Cooper said, “Our Q1 results were very strong. We achieved the highest quarterly revenue in our sixteen-year history as a stand-alone company.”
WMG was traded on the New York Stock Exchange (NYSE) until 2011, when it was purchased (and turned private) by Access Industries, a New York-based conglomerate.
As one of the “big three” recording companies, WMG has some of today’s most popular recording artists in its ranks. Elektra Records, Warner Records, and Atlantic Records—three of the foremost record labels—are owned by WMG, as is music publishing powerhouse Warner Chappell Music.
WMG’s previous fiscal year was similarly encouraging, representing a major uptick in both revenue and profits.