Photo Credit: John (star5112) / CC by 2.0
Warner Music Group disclosed a whopping $650 million in catalog expenditure since its joint venture with Bain Capital was established last year.
Warner Music Group (WMG) just posted its Q2 financials, with $1.7 billion in revenue for the company, a 17% increase over last year. Recorded music revenue was also up 17% to $1.38 billion, while publishing revenue increased 14% to $453 million. Net income increased from $36 million last year to $181 million.
Perhaps most impressively, WMG also reported that since establishing its $1.2 billion catalog acquisition joint venture with Bain Capital last year, the music giant has already acquired $650 million in recorded and publishing catalogs. However, the company didn’t specify which deals those were. WMG also acquired indie music distribution platform Revelator in April, but that was notably outside of the joint venture.
“Our Q2 results demonstrate the powerful combination of creative and operational success, as well as financial discipline, providing clear evidence that our strategic transformation is working,” said WMG CEO Robert Kyncl. “Anchored by our three strategic pillars to grow share, increase the value of music, and improve efficiency and effectiveness, our momentum is building and we are well-positioned to continue delivering long-term value for our artists, songwriters, and shareholders.”
Kyncl also confirmed on the company’s earnings call that CFO Armin Zerza will be serving as COO beginning tomorrow (May 8).
“For the fourth consecutive quarter, we have delivered on our sustainable growth model, accelerating core growth, margin expansion, and cash flow productivity,” said Zerza. “Behind a profitable growth engine that pairs disciplined capital allocation and rigorous cost management with industry-leading creative and AI initiatives, we are well-positioned to create significant long-term value for our shareholders.”
The earnings report followed WMG’s announcement of a new first-look deal with Paramount for theatrical films about the lives of the major label’s artists and songwriters. That deal comes on the heels of a similar deal with Netflix back in March for documentary content.
