Streaming revenue up 29.4% for Warner Music Group
Warner Music Group’s financials for Q2 showed the recording division putting in a better performance than publishing with an impressive 13.2% year-on-year growth to US$1.09 billion.
Most of this extra $124 million made over the three months to March 31 was attributed to recorded music streaming.
This reached $537 million in the quarter after a 29.4% growth to representing 57.6% of entire financials.
To put streaming in a bigger picture, over six months to March 31, it generated $1.03 billion – or a 26.9% expansion on the same period a year earlier.
Recorded music was up 18%. Digital now represents 60.6% of the revenue chart, compared to 56.8% in Q2 2018, and triggered net income’s leap to $67 million.
Showing upwards financial moves were recorded music digital, artist services, expanded-rights and music publishing digital revenue.
Publishing arm Warner Chappell was down 9.2% YoY to $152 million.
This loss of $16 million in the quarter was attributed to a drop in licensing and publishing revenue from mechanical (due to a swing to digital), performance (“lower market share and loss of administration rights in certain catalogues”) and sync (less activity).
After showing a sign of growth in the last quarter, the physical format went back into the red.
WMG operating income was $122 million (compared to $83 million in Q2 2018) while OIBDA grew by 25.7% in the first quarter to $191 million.
Major sellers in Q2 included K-pop act Twice, Meek Mill, The Greatest Showman soundtrack, Ed Sheeran and Cardi B.
“Our second-quarter results were strong,” said Steve Cooper, Warner Music Group’s CEO.
“Our sustained investment in our artists and songwriters, our artist services business and our world-class operators, are delivering great results.”