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.

YTD MARKET SHARE
It's a mad, mad, mad, mad music biz. (6/13a)
NEAR TRUTHS: THE HITS KEEP COMING (PART TWO)
Born in 1986 by mad scientists; still lurking. (6/12a)
HITS LIST GOES COUNTRY
Pairs well with grits and gravy. (6/14a)
TOWNSHEND, PLATT AMONG TONYS PRESENTERS
Sunday! (6/12a)
SONG REVENUE: LEGERDEMAIN
Slim Shady lives! (6/13a)
THE NEW UMG
Gosh, we hope there are more press releases.
TIKTOK BANNED!
Unless the Senate manages to make this whole thing go away, that is.
THE NEW HUGE COUNTRY ACT
No, not that one.
TRUMP'S CAMPAIGN PLAYLIST
Now 100% unlicensed!
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)