Warner Music Group posted 1.7billioninrevenueforthecompany′ssecondquarter,WMGreportedThursday,a171.7billioninrevenueforthecompany′ssecondquarter,WMGreportedThursday,a17181 million from $36 million last year.
“Our Q2 results demonstrate the powerful combination of creative and operational success, as well as financial discipline, providing clear evidence that our strategic transformation is working,” WMG CEO Robert Kyncl said in a statement.
Key Financial Highlights
- Total Revenue: $1.7 billion (+17%)
- Recorded Music Revenue: $1.38 billion (+17%)
- Publishing Revenue: $453 million (+14%)
- Net Income: 181million(upfrom36 million)
Recorded music revenue was up 17 percent to 1.38billionfrom1.17 billion, and publishing revenue rose 14 percent to $453 million.
Catalog Acquisition Update
- Joint Venture: $1.2 billion catalog acquisition JV with Bain Capital (established last year)
- Acquisitions to Date: $650 million in recorded and publishing catalogs (specific deals not disclosed)
- Other Acquisition: Revelator (indie music distribution platform) – acquired in April
Beyond the financial updates in its report, WMG also disclosed that since establishing its 1.2billioncatalogacquisitionjointventurewithBainCapitallastyear,they′vealreadyacquired650 million in recorded and publishing catalogs.
Outside of the JV, Warner Music also acquired indie music distribution platform Revelator back in April.
Strategic Partnerships
- Paramount: First-look deal for theatrical films (announced day of earnings report)
- Netflix: First-look for documentary content (announced in March)
The earnings report came hours after WMG announced a new first-look deal with Paramount for theatrical films. Back in March, WMG announced another first-look with Netflix for documentary content on its roster.
Leadership Update
- Armin Zerza: Will serve as COO in addition to CFO, effective tomorrow
On the call, Kyncl confirmed that CFO Armin Zerza will be serving as COO as well, starting tomorrow.
Future Outlook
Kyncl cited upcoming releases from Charli XCX, Alex Warren, and Sombr among others to drive more revenue for Q3.
“For the fourth consecutive quarter, we have delivered on our sustainable growth model, accelerating core growth, margin expansion, and cash flow productivity,” Zerza said in a statement.
