Warner Music Hits $6B Milestone for the Year After Second-Half Rebound

Warner Music Group reported quarterly revenue was up 6% as of Sept. 30, as the third-largest U.S.-based music rode a solid release slate that included the Barbie soundtrack, Zach Bryan and FIFTY FIFTY to eclipse $6 billion in overall annual revenue for the first time.

WMG reported revenue for its fiscal fourth quarter rose to $1.58 billion, driven by a stronger release schedule and a 17% uptick in music publishing revenue of $298 million. Streaming revenue rose by 12.6% overall and digital revenue was up 8% to $1.06 billion compared to the year ago quarter. Net profit edged slightly higher to $154 million from $150 million a year ago.

“We delivered on our promise of second-half improvement,” said Robert Kyncl, CEO, Warner Music Group in prepared remarks ahead of the company’s earnings call with investors. “As the music ecosystem is recognizing the value of premium content and emerging markets continue to gain traction, our industry is healthy and growing.”

WMG’s share price edged slightly lower in pre-market trading, down 0.54% to $32.85 on Thursday at 8:19 a.m. New York time.

Recorded music revenue over the course of the quarter rose 4% to nearly $1.3 billion, bolstered by a 6% increase in digital revenue to $877 million and a 9.6%% increase in streaming revenue ($848 million on its own) on the stronger release schedule and growth in ad-supported revenue, which WMG said reflects the company’s TikTok licensing renewal. Licensing revenue increased 9.2% to 95 million, and artist services and expanded-rights revenue decreased 7.4% to $189 million, due to sagging merchandising revenue. Physical revenue ticked up 5.7% to $130 million, thanks to that aforementioned better slate of albums releases. Downloads? Down 48% for the quarter at just $29 million in revenue.

The growth in music publishing revenues was driven by a 20.8% uptick in digital revenue to $192 million and 28.4% increase in streaming revenue, reflecting the impact of digital deal renewals (ie. TikTok) and a revenue true-up of $14 million from the CRB. Mechanical revenue spiked about 42% — to $17 million — primarily due to the timing of distributions in the quarter, and synchronization was basically flat at $41 million.

WMG prefers to use operating income before depreciation and amortization (OIBDA) as a metric to assess its overall business health, and OIBDA increased 19% to $291 million in the quarter compared to $245 million a year ago. Adjusted OIBDA rose 20% to $317 million from $265 million a year ago.

Key WMG financial highlights for its Q4:

Key WMG financial highlights for its full fiscal year: