Revenue Jumps 29.4% in Warner Music Group’s Latest Quarter
Warner Music Group has published financial reports for its fiscal second quarter of 2019.
For the three months ended March 31st, 2019, WMG reported $1.09 billion in revenue. This figure represents a handsome 13% jump over the same period last year. In addition, for the six months ended March 31st, 2019 (fiscal Q1 and Q2 2019), the major label reported $2.3 billion in revenue, up 14% over the same period last year.
Recorded music revenue grew 18%, or $142 million, in Q2 2019. In addition, WMG’s streaming revenue during this quarter jumped 29.4% to $537 million.
For Q2 2019, digital revenue – including streaming music and downloads – jumped 21% to $661 million. In the label’s Q1 and Q2 2019, digital revenue grew 19% to $1.3 billion. Growth in digital and artist services and expanded-rights revenue, as well as growth in music publishing digital revenue, were partially offset by a decline in physical. Digital revenue represented 60.6% of WMG’s total revenue in Q2 2019.
Operating income grew 47% to $122 million in Q2 2019, up from $83 million. In its Q1 and Q2 2019, operating income skyrocketed 55% to $269 million, up from $173 million over the same period last year.
Adjusted operating income increased 16% to $130 million in Q2 2019. For the six months ended March 31st, 2019, adjusted operating income totaled $284 million, up 32% year-over-year.
OIBDA (operating income before depreciation and amortization) jumped 26% over the prior-year quarter to $191 million in Q2 2019. OIBDA also jumped 32% in Q1 and Q2 2019 to $406 million, up from $307 million year-over-year.
In Q2 2019, adjusted OIBDA slightly increased to $199 million, up 10% over the prior-year quarter. For the six months ended March 31st, 2019, adjusted OIBDA rose 21% to $421 million.
Thanks to growth in digital revenue, net income also skyrocketed to $67 million in Q2 2019, up from a $1 million net loss last year.
In its Q1 and Q2 2019, WMG posted $153 million in net income, up from just $4 million year-over-year.
Adjusted net income totaled $75 million in Q2 2019, up from $28 million over the prior-year quarter. For the six months ended March 31st, 2019, adjusted net income skyrocketed to $168 million, up from $46 million year-over-year.
The company’s net cash provided by operating activities totaled $7 million in Q2 2019. In Q1 and Q2 2019, net cash plummeted 27% to $99 million, down from $136 million year-over-year.
Overall, licensing and publishing revenue from mechanical, performance, and sync fell. Warner/Chappell’s overall revenue declined 9.2% in Q2 2019.
Speaking about the financial report, Steve Cooper, WMG’s CEO, explained,
“Our second-quarter results were strong. Our sustained investment in our artists and songwriters, our artist services business, and our world-class operators are delivering great results.”
Eric Levin, the company’s Executive Vice President and CFO, added,
“Revenue and OIBDA were both up double-digits. Our cash position remains strong, with $470 million on the balance sheet at quarter-end.”
Featured image by Eva Rinaldi (CC by 2.0).