Warner Music’s full-year streaming revenue grows 23%
Warner Music Group generated US$2.12 billion of streaming revenue in its financial year, in the 12 months ending September 30.
It marked a rise of 23% (extra $396 million), compared with Warner’s 2018 financials. In Q4 along, streaming revenue’s growth in Q4 was 18%, or $550 million.
Total revenue for FY2019 for the major rose 11.7% (14.7% at constant currency) to $4.475 billion, while its profit was $258 million.
Recorded music was up 14.3% (or 17.2% in constant currency) to $3.84 billion and grew in all territories including Australia.
The entire digital source, including downloads, was $2.34 billion, up from $2,01bn in FY 2018.
Major sellers included Ed Sheeran, Johnny Hallyday, The Greatest Showman soundtrack, Cardi B and Meek Mill.
A breakdown showed physical revenue at $559 million (down 11.75%), and artists services and expanded rights at $629 million (up 61.7%).
Total revenue from the music publishing division was $643 million, down by $10 million.
However the division’s digital revenue put in a strong performance, up14.3% (or 17.3% in constant currency) to$271 million.
As a result, digital now accounts for 42.1% of total music publishing revenue. It was 36.3% in FY2018.
Operating income was $356 million (it was, $217 million the year before)and operating margin was 8% up from 5.4%.
Total revenue for Q4 was $1.12 billion (an increase of 8.2% or10.4% at constant currency) fuelled by Ed Sheeran, Lizzo, Mariya Takeuchi, Slipknot and Cardi B.
“We are passionate champions for our recording artists and songwriters and work tirelessly to help them build long-term global careers,” said Steve Cooper, CEO of Warner Music Group.
“Their talent and our focus and dedication made for an excellent fiscal year, and we’re excited by the multitude of growth opportunities which lie ahead in 2020 and beyond.”
Executive vice president and CFO Eric Levin additionally noted, “Our revenue and OIBDA performance was strong.
“With $619 million on our balance sheet at year-end, the cash generating power of our business has never been clearer.”