Warner Music Group (WMG) generated over $2 billion in recorded music streaming revenues in the 12 months to end of September.
Revenue from streaming services grew by $396m to $2.13bn for the fiscal year ended September 30, up from $1.73bn in the prior fiscal year.
The news came in WMG’s full-year financial results published today (November 27), in which the music company reported $258m net profit for FY 2019.
Total annual WMG revenues – across recorded music, publishing and other activities – stood at $4.48bn, up 12% on the $4.01bn posted in the prior year.
WMG’s specific recorded music revenue rose 14.3% (or 17.2% in constant currency) to $3.84bn in the year.
The company’s major sellers in the past year included Ed Sheeran, Johnny Hallyday, The Greatest Showman soundtrack, Cardi B and Meek Mill.
WMG’s total music publishing (i.e. Warner Chappell Music) revenue was $643m, down $10m on the prior year, while music publishing digital revenue increased 14.3% (or 17.3% in constant currency) from $237m in FY 2018 to $271m.
Revenue from digital sources represented 42.1% of total music publishing revenue versus 36.3% in the prior year.
WMG-wide operating income for FY 2019 was $356m, up from $217m in the prior year and operating margin was 8% up from 5.4% in the prior year, driven by higher revenue, lower variable compensation expense and a $15m benefit from ASC 606 which were partially offset by higher product costs related to revenue mix.
Warner’s Q4 (three months to end of September) recorded music revenue grew 10.4% (or 12.4% in constant currency) to $953m
That revenue included $54 million related to the acquisition of EMP.
Growth in digital and artist services and expanded-rights revenue was partially offset by a decline in physical revenue.
The increase in artist services and expanded-rights revenue was attributable to the acquisition of EMP and higher touring and merchandising revenue.
WMG reports that recorded music revenue grew in all regions.
Major sellers in Q4 2019 included Ed Sheeran, Lizzo, Mariya Takeuchi, Slipknot and Cardi B.
“We are passionate champions for our recording artists and songwriters and work tirelessly to help them build long-term global careers.”
Steve Cooper, Warner Music Group (pictured)
“We are passionate champions for our recording artists and songwriters and work tirelessly to help them build long-term global careers,” said Steve Cooper, Warner Music Group’s CEO.
“Their talent and our focus and dedication made for an excellent fiscal year, and we’re excited by the multitude of growth opportunities which lie ahead in 2020 and beyond.”
“With $619 million on our balance sheet at year-end, the cash generating power of our business has never been clearer.”
Eric Levin, Warner Music Group
“Our revenue and OIBDA performance was strong,” added Eric Levin, Warner Music Group’s Executive Vice President and CFO.
“With $619 million on our balance sheet at year-end, the cash generating power of our business has never been clearer.”Music Business Worldwide