Warner Music Group had a flat year on the 2020 calendar – but the 2021 company already has a flyer.
Today (May 4), WMG announced its budget results for the three months ending March (the second quarter of the fiscal year but the first quarter of the calendar).
Quarterly music revenue – including streaming, digital and physical sales, and ancillary revenue – rose more than $ 1 billion to $ 1.059 billion, up 16.8% (or 12.9% at constant exchange rates).
Within that recorded music count was $ 722 million from streaming, a number that is up 23.2% year over year (or 20.3% at constant exchange rates) compared to the first quarter of 2020 calendar.
Warner said this surge in streaming revenue partially reflected “accelerated revenue growth in emerging streaming platforms like Facebook, TikTok and Peloton.”
Another key element of Warner’s music recording, physical music sales, rose 25.5% year over year (or 19.2% in constant currencies) to $ 118 million for the quarter.
Warner said the best-selling music recording artists in the quarter included Dua Lipa (pictured), Michael Bublé, Ed Sheeran, Ava Max and Japanese rock band The Yellow Monkey.
WMG’s music publisher – Warner Chappell Music – grew revenue to $ 192 million in the first quarter of 2021, up 15.7% year over year (or 11.6% at constant exchange rates).
Chappell’s main character in the quarter was digital revenue, which increased $ 30 million over the same period in 2020.
Overall, Warner Music Group’s revenue – across music recordings, music releases and more – was $ 1.250 billion for the quarter, up 16.7% year over year (or 12.8% in constant currencies).
Steve Cooper, CEO of Warner Music Group, said, “After a strong first quarter, I am pleased to announce that our momentum has continued [fiscal] Q2, and our business is stronger than ever. Despite the ongoing pandemic, we achieved double-digit sales growth in both Recorded Music and Music Publishing.
“Our success was due to new releases from our incredible artists and songwriters, as well as the brave and imaginative execution of our world-class operators. We look forward to the rest of the year as we have a fantastic range of new music from established superstars and emerging talent. “
“I am pleased to announce that our momentum has continued [fiscal] Q2, and our business is stronger than ever. “
Steve Cooper, Warner Music Group
Eric Levin, Executive Vice President and CFO of Warner Music Group added, “In the second quarter, the continued strength of our core streaming business was supported by impressive revenue growth in emerging streaming platforms, which resulted in healthy margins and free cash flow.
“We look forward to delivering long-term value as we continue to invest in culture-changing talent, innovative technology and dynamic new partnerships.”Music business worldwide