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During the fiscal year, revenue – encompassing recorded music, music publishing and other activities – was up 3.9% year-on-year (at constant currency), passing $6bn for the first time in WMG’s history.
Over the three months, revenue was up 5.9% (or 4.5% in constant currency). Digital revenue increased 8.0% (or 7.1% in constant currency), which includes the impact in the prior-year quarter of $38m in downloads and other digital revenue from the settlement of certain copyright infringement. Streaming revenue increased 12.6% (or 11.6% in constant currency). Recorded music streaming revenue increased by 9.6% (or 8.9% in constant currency).
Growth in recorded music streaming revenue increased due to a stronger release schedule and growth in ad-supported revenue, which includes the impact of the company’s TikTok renewal. Music publishing streaming revenue increased by 28.4% (or 25.8% in constant currency), which includes a benefit in the quarter and the prior-year quarter of $17m and $3m, respectively, resulting from a ruling by the Copyright Royalty Board in Phonorecords III upholding higher percentage of revenue US mechanical royalty rates.
Revenue increases in the quarter were also driven by growth in recorded music licensing and physical revenue and music publishing mechanical, performance and synchronisation revenue. Recorded music artist services and expanded-rights revenue were lower on an as-reported basis and in constant currency. Excluding the copyright settlement and the CRB Rate Benefit, revenue increased by 7.8% (or 6.3% in constant currency).
Operating income was $212m compared to $163m in the prior-year quarter. OIBDA was $291m, compared to $245m in the prior-year quarter, an increase of 18.8% (or 16.9% in constant currency), and OIBDA margin increased 1.9 percentage points to 18.3% from 16.4% in the prior-year quarter (the same in constant currency).
The increases in operating income, OIBDA and OIBDA margin were primarily due to strong operating performance, the favourable impact of exchange rates and $9m of savings from the previously announced restructuring plan partially offset by revenue mix and $10m of incremental investment in technology in the quarter and $29m from the Copyright Settlement in the prior-year quarter.
“We delivered on our promise of second-half improvement, and reached over $6 billion in annual revenue for the first time in WMG’s history,” Warner Music Group CEO Robert Kyncl said. “As the music ecosystem is recognising the value of premium content and emerging markets continue to gain traction, our industry is healthy and growing. With these tailwinds at our back, we’ve been working hard to build a WMG that will excel in the music industry of tomorrow and look forward to bringing you incredible music in 2024 from our extraordinary artists and songwriters.”
WMG financial year highlights:
Financial highlights for the three months ended 30 September 2023:
Financial highlights for the 12 months ended 30 September 2023:
Written by: Soft FM Radio Staff
6bn groups music Revenue surges Warner
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