The Greatest Showman soundtrack helped Warner Music hit new revenue heights in Q1

Warner Music Group’s recorded music revenue hit US$1 billion in its first fiscal quarter – a first-time achievement by the major.

The period ending December 31 saw a 15% rise year-on-year on a constant currency basis.

Streaming rose 24.3% to $502 million while physical sales bucked the trend with a 3.6% growth to $231 million.

Digital revenue expanded 17.6% (19.9% in constant currency) to $627 million and now represents 52.1% (from 51% in the previous quarter) of the major’s revenue split.

Major sellers included releases from Johnny Hallyday, Ed Sheeran, Michael Bublé, Kobukuro and The Greatest Showman soundtrack.

Music publishing revenue rose by $22 million to $165 million or 15.4% (18.7% at constant currency).

Publishing digital revenue was $65 million for the quarter.

Operating income was up 63% to $147 million, while operating income before depreciation and amortization reflected a 39% rise to $215 million.

In its report, Warner Music Group noted that the October 2017 acquisition of German merchandising company EMP for $180 million gave the recorded music division a net gain of $76 million.

This offset a drop in $24 million due to its selling off a concert promotion division and a change in its accounts procedure in booking revenue.

“I’m pleased that we are off to a great start for fiscal ‘19,” said Steve Cooper, Warner Music Group’s CEO.

“We have best in class operators working with amazing music from our extraordinary artists and songwriters across a diverse set of genres, generations and geographies.”

Warner Music Group’s total revenue in the quarter was $1.2 billion, which represented a growth of 15%.

In comparison, Sony’s recorded music revenue in the same three months was $1.039 billion.

Universal is yet to release its quarterly figures.