Warner Music Q4 and Full-Year Revenue Results for 2023 Hit Milestone – Billboard


Warner Music Group reported quarterly income was up 6% as of Sept. 30, because the third-largest U.S.-based music rode a strong launch slate that included the Barbie soundtrack, Zach Bryan and FIFTY FIFTY to eclipse $6 billion in total annual income for the primary time.

WMG reported income for its fiscal fourth quarter rose to $1.58 billion, pushed by a stronger launch schedule and a 17% uptick in music publishing income of $298 million. Streaming income rose by 12.6% total and digital income was up 8% to $1.06 billion in comparison with the 12 months in the past quarter. Internet revenue edged barely increased to $154 million from $150 million a 12 months in the past.

“We’ve been working arduous to construct a WMG that may excel within the music trade of tomorrow,” mentioned WMG CEO Robert Kyncl on the corporate’s earnings name. “Our work is already starting to bear fruit and I guarantee you that there’s rather more pleasure to come back … Trying ahead to a brand new fiscal 12 months, I’m much more optimistic than I used to be after I began. We’re excited in regards to the developments we’re seeing within the trade and energized by our plans to capitalize on them.”

WMG’s share value edged barely decrease in pre-market buying and selling, down 0.54% to $32.85 on Thursday at 8:19 a.m. New York time.

Recorded music income over the course of the quarter rose 4% to almost $1.3 billion, bolstered by a 6% enhance in digital income to $877 million and a 9.6%% enhance in streaming income ($848 million by itself) on the stronger launch schedule and progress in ad-supported income, which WMG mentioned displays the corporate’s TikTok licensing renewal. Licensing income elevated 9.2% to 95 million, and artist providers and expanded-rights income decreased 7.4% to $189 million, as a result of sagging merchandising income. Bodily income ticked up 5.7% to $130 million, because of that aforementioned higher slate of albums releases. Downloads? Down 48% for the quarter at simply $29 million in income.

The expansion in music publishing revenues was pushed by a 20.8% uptick in digital income to $192 million and 28.4% enhance in streaming income, reflecting the impression of digital deal renewals (ie. TikTok) and a income true-up of $14 million from the CRB. Mechanical income spiked about 42% — to $17 million — primarily as a result of timing of distributions within the quarter, and synchronization was principally flat at $41 million.

WMG prefers to make use of working earnings earlier than depreciation and amortization (OIBDA) as a metric to evaluate its total enterprise well being, and OIBDA elevated 19% to $291 million within the quarter in comparison with $245 million a 12 months in the past. Adjusted OIBDA rose 20% to $317 million from $265 million a 12 months in the past.

Key WMG monetary highlights for its This autumn:

  • Whole income rose 6% to $1.586 billion for the fourth quarter 2023, from $1.5 billion in the identical quarter 2022.
  • Internet revenue, or internet earnings, was up 3% at $154 million this quarter in comparison with $150 million.
  • Digital income rose 8% to $1.068 billion from $989 million.
  • Streaming income for each recorded music and publishing rose 13% to $1.03 billion.
  • Recorded income rose 4% to $1.291 billion from $1.244 billion.
  • Publishing income rose 17% to $298 million from $254 million.
  • Working earnings was up 30% to $212 million from $163 million.
  • OIBDA was up 19% to $291 million in comparison with $245 million.

Key WMG monetary highlights for its full fiscal 12 months:

  • Whole income rose 2% to $6.037 billion for the fiscal 12 months, from $5.9 billion in 2022.
  • Recorded income flattened at $4.955 billion from $4.966 billion.
  • Publishing income rose 14% to $1.08 billion from $958 million.
  • Digital income rose 3% to $3.9 billion from $3.8 billion in 2022.
  • Working earnings was up 11% to $790 million from $714 million.

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