WMG Q3: STREAMING, NET INCOME GROW

On the heels of a major restructuring of its recorded-music business, Warner Music Group saw a 1% decrease in total revenue in fiscal Q3, though net income rose 14% to $141m and operating income jumped 10% to $207m.

WMG's streaming revenue was up 5.5%, reflecting continued subscription-related growth, while music-publishing streaming revenue rose 5.9%. Adjusted for the impact of the CRB rate benefit of $7m, the latter figure rises to 12.3%. The growth is attributable to performance and synchronization revenue and was offset by lower revenue for physical media, licensing and artist services.

As with the prior quarter, recorded-music revenue was unfavorably impacted by termination of a distribution agreement with BMG and a renewal with a digital partner.

The quarter's top sellers included Dua Lipa, Benson Boone, Zach Bryan, Teddy Swims and Twenty One Pilots. WMG also said that more of its artists debuted on the Spotify global Top 10 than any other music company.

"Our strong subscription streaming growth in Q3 was driven by the performance of our music and healthy industry trends,” WMG CEO Robert Kyncl said. “We’re nurturing the next generation of artists and songwriters, creating fresh impact for our catalog and working with our partners to increase the value of music. Our commitment to long-term artist development, combined with a flatter structure in recorded music, will enable us to super-serve talent and set WMG up for sustained future growth."

“Our Q3 results were highlighted by strong margin expansion and operating cash-flow growth, reflecting robust streaming performance and disciplined cost management,” added CFO Bryan Castellani. “Looking ahead, we're focused on delivering a strong close to the year. The industry remains healthy and we continue to position ourselves for long-term success.”