Warner Music Group

Warner Music Group Posts Solid Q2 Earnings

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(CelebrityAccess) – Warner Music Group has published their second-quarter earnings and the numbers look strong.

Total revenue was up 16.7% (10.4% in constant currency) while digital revenue was up 24.6% (19.7% in constant currency), and represented 56.8% of total revenue, compared to 53.2% in the prior-year quarter.

Music Publishing revenue also rose 20.0% (or 13.7% in constant currency) with revenue increasing in all segments – digital, performance, synchronization and mechanical.

“We’re having another excellent year with strong momentum around the world in both Recorded Music and Music Publishing,” said Steve Cooper, Warner Music Group’s CEO.  “We’re investing heavily in A&R, digital innovation and the transformation of our operations to ensure that we are positioned for long-term success.”

“We showed strong revenue and OIBDA growth in our second quarter,” added Eric Levin, Warner Music Group’s Executive Vice President and CFO.  “This is our eleventh consecutive quarter of year-over-year revenue growth and we’re proud of our ability to deliver robust results on a consistent basis.”

Net loss for the company was $1 million compared to net income of $20 million in the prior-year quarter and Adjusted net income was $28 million compared to Adjusted net income of $25 million in the prior-year quarter.  The net loss was primarily attributable to a loss on extinguishment of debt of $23 million related to the partial redemption of the Company’s 6.75% Senior Notes, and higher non-cash tax expense in the quarter related to a one-time tax benefit in the prior-year quarter, offset by higher operating income. 

You can view WMG’s full report here.