Strong dollar drags Warner Music’s revenues down 10%, losses narrow

The strength of the US dollar hit Warner Music Group hard in the three months to the end of June.

The business posted $710m in revenues for its fiscal Q3, which dropped 10% or $78m on the prior year – but just 1%, or $5m, on a constant currency basis.

Total recorded music income also fell 10% to $592m, yet at constant currency this revenue decreased by $4 million, or 1%.

Physical sales contributed $161m in the quarter – down 20% on the $202m posted in Q3 2014.

Surprisingly, Warner’s currency woes had enough impact to see its digital recorded music income fall 2%, or $6m, from $299m to $293m.

Revenue from streaming services grew by $22 million, or $32 million at constant currency, and was offset by digital download declines of $23 million, or $14 million at constant currency.

Music Publishing revenues decreased by $14 million, or 10%, to $123 million for the three months ended June 30, 2015 from $137 million for the three months ended June 30, 2014.

At constant currency, music publishing revenue decreased by $1 million, or 1%.

Excluding the unfavorable impact of foreign currency exchange rates, digital and licensing revenues increased, while physical and artist services and expanded-rights revenue decreased.

WarnerQ3
Warner results

Music Business Worldwide

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