Warner Music Group posted its best-ever quarterly revenue in its 17-year history as a stand-alone company, it announced on Monday, powered by streaming, which led to double-digit growth in digital revenue.
Notably, its recorded music streaming growth was up 16% in constant currency, and publishing digital was up 36%, although overall its Warner Chappell division’s revenue was flat.
For the three months that ended Dec. 31, 2020, the company’s total revenue grew 6% or 4% in constant currency; digital revenue grew 17% or 16% in constant currency; net income was $99 million versus $122 million in the prior-year quarter, and OIBDA increased 13% to $267 million versus $236 million in the prior-year quarter. Adjusted OIBDA increased 18% to $282 million versus $240 million in the prior-year quarter, and adjusted EBITDA increased 19% to $297 million versus $249 million in the prior-year quarter.
“Despite the impact of COVID, we generated the highest quarterly revenue in our 17-year history as a standalone company, growing 4% compared to the prior-year period, which was unaffected by COVID,” said WMG CEO Steve Cooper, CEO, Warner Music Group. “The strong double-digit growth in our digital revenue and direct-to-consumer business more than offset the continued disruption to our performance, merchandising, and physical revenue. We have some fantastic new music from amazing artists and songwriters on the way, and we continue to grow our investment in a new generation of talent, as well as inventing bold and memorable ways to impact global culture.”
“We are extremely proud of our first-quarter results, which were highlighted by significant growth over a number of key metrics when compared to a previous record-breaking quarter,” added Eric Levin, Executive Vice President and CFO, Warner Music Group. “While certain areas of our business remain challenged due to COVID, our core streaming business remains strong and our direct-to-consumer destinations and emerging streaming platforms have bolstered our performance. We are well-positioned for long-term growth.”
More to come …