Streaming continues to boost Warner Music revenues

Streaming continues to boost Warner Music Group (WMG) revenues, according to figures released overnight by the major for its latest quarter ending March 31.

In this Q2 period, streaming revenues grew 45%, pushing overall revenue year-on-year by 10.7% to US$825 million from $745 million.

It was the first quarter in which digital accounted for over half of its total revenue: now 53.2% while it made up 48.3% in Q2 in 2016.

“Our streaming revenue is now double that of physical and triple that of downloads,” said CEO Steve Cooper.

No wonder, then, that WMG went ahead and signed a deal with YouTube despite its frustration with its low royalty payments,as reported by TMN yesterday.

WMG posted growth in both recorded music (10.5% to $825 million) and publishing (14.2% to $145 million). Operating income was $78 million, a contrast to $52 million in the same quarter in 2016. Net income came to $20 million compared to $12 million.

Warner Music Group had its biggest revenue growth in the US, Asia and Latin America but dropped in Europe.

It specifically named Ed Sheeran, Bruno Mars, Kyosuke Himuro, twenty one pilots and the Hamilton original cast album for the uptick.

WMG also found joy in the performance of digital (up 21.9% to $686 million) and artist services and expanded-rights revenue (greater merchandise figures in the US) in its recorded music business.

But these were pulled down as physical format continued to crumble. Recorded music licensing and music publishing mechanical revenue were both flat.

As of March 31, WMG reported a cash balance of $476 million and total debt of $2.767 billion.

CEO Cooper summed up, “We had another excellent quarter, with double-digit growth in both the current and prior-year quarters.

“An improved industry environment is helping, but we continue to outperform our competition due to fantastic new music and outstanding execution by our operators around the world.”