Warner Music Group posted its best-ever quarterly income in its 17-year historical past as a stand-alone firm, it introduced on Monday, powered by streaming, which led to double-digit progress in digital income.
Notably, its recorded music streaming progress was up 16% in fixed forex, and publishing digital was up 36%, though general its Warner Chappell division’s income was flat.
For the three months that ended Dec. 31, 2020, the corporate’s whole income grew 6% or 4% in fixed forex; digital income grew 17% or 16% in fixed forex; internet earnings was $99 million versus $122 million within the prior-year quarter, and OIBDA elevated 13% to $267 million versus $236 million within the prior-year quarter. Adjusted OIBDA elevated 18% to $282 million versus $240 million within the prior-year quarter, and adjusted EBITDA elevated 19% to $297 million versus $249 million within the prior-year quarter.
Prime-performing artists throughout the quarter included Dua Lipa, Ava Max, Johnny Hallyday and Ed Sheeran.
“Regardless of the impression of COVID, we generated the best quarterly income in our 17-year historical past as a standalone firm, rising 4% in comparison with the prior-year interval, which was unaffected by COVID,” mentioned WMG CEO Steve Cooper, CEO, Warner Music Group. “The robust double-digit progress in our digital income and direct-to-consumer enterprise greater than offset the continued disruption to our efficiency, merchandising, and bodily income. Now we have some incredible new music from wonderful artists and songwriters on the way in which, and we proceed to develop our funding in a brand new era of expertise, as nicely as inventing daring and memorable methods to impression international tradition.”
“We’re extraordinarily pleased with our first-quarter outcomes, which had been highlighted by vital progress over a lot of key metrics when in comparison with a earlier record-breaking quarter,” added Eric Levin, Government Vice President and CFO, Warner Music Group. “Whereas sure areas of our enterprise stay challenged as a result of COVID, our core streaming enterprise stays robust and our direct-to-consumer locations and rising streaming platforms have bolstered our efficiency. We’re well-positioned for long-term progress.”
Revenue was up 6.3% (or up 3.8% in fixed forex). The corporate’s digital income progress throughout recorded music and publishing was partially offset by a decline in recorded music bodily and artist providers and expanded-rights income and in publishing efficiency, mechanical and synchronization income, which displays the impression from COVID, the assertion notes; recorded music licensing income was flat.
The rise in income was primarily as a result of progress in streaming income, the Company’s largest and fastest-growing income, a positive impression from trade charges and powerful bodily releases and direct-to-consumer merchandising income, partially offset by COVID-related enterprise disruption and the continued decline in bodily income as a result of transition to streaming. Digital income grew 16.9% (or 15.5% in fixed forex), and represented 61.8% of whole income, in comparison with 56.2% within the prior-year quarter.
Working earnings was $196 million in comparison with $165 million within the prior-year quarter. OIBDA was $267 million, a rise from $236 million within the prior-year quarter and OIBDA margin elevated 1.2 share factors to twenty.0% from 18.8% within the prior-year quarter.
Recorded music income was up 7.1% (or up 4.5% in fixed forex). The income improve was primarily as a result of continued progress in streaming income—which grew 17.5% over the prior-year quarter and eight.3% over the prior quarter and favorable trade charges —which was partially offset by COVID-related enterprise disruption within the present quarter. Progress in digital income was partially offset by declines in artist providers and expanded-rights income and bodily income. Licensing income was flat. , The decline in artist providers and expanded-rights income was as a result of tour postponements and cancellations and decrease tour merchandise income ensuing from COVID-related enterprise disruption, partially offset by will increase in direct-to-consumer income pushed by a robust vacation season as COVID restrictions restricted brick-and-mortar procuring in Europe, the announcement states.
Recorded music working earnings was $223 million, up from $191 million within the prior-year quarter and working margin was up 1.6 share factors to 19.2% versus 17.6% within the prior-year quarter.
Music publishing income elevated 1.2% (or was down 0.6% in fixed forex). Digital income progress was partially offset by decline in efficiency, mechanical and synchronization income. Digital income elevated 35.6% (additionally 35.6% in fixed forex) reflecting the persevering with shift to streaming and timing of latest offers with digital service suppliers, and represented 56.6% of whole Music Publishing income versus 42.2% within the prior-year quarter. The decreases in efficiency income and synchronization income had been primarily as a result of COVID-related enterprise disruption. Mechanical income additionally decreased as a result of COVID-related enterprise disruption and the persevering with shift to streaming.
Music publishing working earnings was $18 million, up 28.6% from $14 million within the prior-year quarter largely pushed by income combine, partially offset by will increase in amortization. Working margin was 10.3%, up 2.2 share factors from 8.1% within the prior-year quarter.