Quantcast

WMG CLOSES 2020 WITH RECORD-SETTING QUARTER

In the last three months of 2020, Warner Music Group generated the highest quarterly revenue of its 17 years as a stand-alone company.

Revenue was up 6.3% (3.8% in constant currency) to $1.335b in the final three months of 2020, with Recorded Music pulling in $1.16b, a 7% spike.

Digital revenue of $825m was 16.9% over the same period in 2019 and represented 61.8% of total revenue, compared to 56.2% in the prior-year quarter. Recorded Music's streaming revenue—$692m—was up 16% over the prior-year quarter.

WMG CEO Steve Cooper said, "The strong, double-digit growth in our digital revenue and direct-to-consumer business more than offset the continued disruption to our performance, merchandising and physical revenue.”

COVID-19 had its greatest impact on artist services and expanded-rights revenue in Recorded Music and performance revenue in Music Publishing. Had those areas held steady, total revenue would have increased 10.1% in WMG's first fiscal quarter of 2021.

Operating income was $196m, compared to $165m in the prior-year quarter. OIBDA was $267m, an increase from $236 million in the prior-year quarter, and OIBDA margin increased 1.2% to 20.0% from 18.8% in the prior-year quarter. 

Major sellers in the quarter included Dua Lipa, Ava Max, Johnny Hallyday and Ed Sheeran.

Music Publishing revenue increased 1.2% to $175m. Digital revenue on the publishing side rose 35.6% to $99m, reflecting the continuing shift to streaming and the timing of new deals with digital service providers. Digital represents 56.6% of total Music Publishing revenue vs. 42.2% in the prior-year quarter.  

"While certain areas of our business remain challenged due to COVID, our core streaming business remains strong and our direct-to-consumer destinations and emerging streaming platforms have bolstered our performance,” WMG EVP and CFO Eric Levin said. “We are well positioned for long-term growth.”

The strong results were announced the same day Fortune magazine put the company on its World’s Most Admired Companies list.

REVENUE CHART:
RAINING CATS & DOGS
Starring Doja Cat, Nipper and Ms. Larry David (5/13a)
RECORDING ACADEMY LOCKS IN HARVEY MASON JR. AS CEO
Meet the new boss, same as the old boss. (5/14a)
TIME TRAVELING
WITH CLIVE (UPDATE)
Beam us up, Uncle Clive. (5/13a)
ROCK HALL INDUCTEES:
NEW & OVERDUE
Todd gets in. Finally. (5/13a)
KG's HOT ALT SUMMER
She also reviews the best outdoor Bluetooth speakers. (5/13a)
RHYTHM, BLUES AND THE FUTURE
The musical tapestry we know as R&B.
WHO'S NEXT?
Predicting the next big catalog deal.
JUST THE VAX, MA'AM
Once we all get vaccinated, how long before we can party?
WORLDWIDE GROOVE
How is globalization bringing far-flung territories into the musical mainstream?
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)