NEW YORK (CelebrityAccess) — On Tuesday, Warner Music Group announced its second-quarter financial results, revealing that revenue for the period was up by 16.7%.
“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.”
According to WMG, the label giant saw revenue growth in its primary divisions, including recorded music, both digital and physical, as well as licensing and all segments of their music publishing business. However, those results were partially offset by a decline in Recorded Music artist services and expanded-rights revenue, the company said.
The decline in artist services and expanded-rights revenue was largely due to increased concert promotion and merchandising activity in the prior-year quarter. Recorded Music revenue grew in all regions. Major sellers included Ed Sheeran, The Greatest Showman soundtrack album, Bruno Mars, WANIMA and Dua Lipa.
Growth in Recorded Music digital, physical and licensing revenue and all segments of Music Publishing revenue $78 million in the prior-year quarter. Recorded Music revenue grew 15.3% with digital revenue up by 25% for the quarter, and while physical grew as well, WMG said the growth was “largely currency related.”
WMG reported an operating income for the quarter of $83 million, up from $78 million in Q2 2018. Adjusted OIBDA (Operating income before depreciation and amortization) was $153 million, up from $116 million in the prior-year quarter and Adjusted OIBDA margin was up 2.4 percentage points to 19.3% reflecting the benefits of revenue mix.
Despite all of the upbeat numbers, WMG still recorded a net loss of $1 million for the quarter, down from the $28 million in net income they reported in the prior-year quarter. WMG attributed the shortfall to paying off debt of $23 million, and a tax expense related to a one-time tax benefit in the prior-year quarter, offset by higher operating income.
“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.”
