NEW YORK (CelebrityAccess) — Warner Music Group revealed the financial results for the company’s fourth fiscal quarter and the full year for 2023 with its music publishing division recording double-digit revenue growth for both the quarter and the entire fiscal year.
For the three months ending September 30, 2023, key financial highlights included a 6% increase in total revenue (5% in constant currency) and an 8% rise in digital revenue (7% in constant currency).
Net income for the quarter topped $154 million, up slightly from the $150 million WMG recorded in the same period the previous year.
OIBDA (Operating Income Before Depreciation and Amortization) showed a significant uptick of 19%, reaching $291 million compared to $245 million in the prior-year quarter (17% in constant currency). Adjusted OIBDA also surged by 20% to $317 million from $265 million in the prior-year quarter (18% in constant currency). However, cash from operating activities decreased by 17% to $338 million compared to $406 million in the same period last year.
For the twelve months ending September 30, 2023, the company reported a 2% increase in total revenue (4% in constant currency) and a 3% rise in digital revenue (5% in constant currency). Net income for the fiscal year amounted to $439 million, down from $555 million in the previous year. OIBDA increased by 7% to $1,122 million compared to $1,053 million in the prior year (10% in constant currency). Adjusted OIBDA also saw a 7% rise to $1,235 million from $1,149 million in the previous year (10% in constant currency). However, cash provided by operating activities decreased by 7% to $687 million compared to $742 million in the prior year.
Revenue for the company’s recorded music division grew by 6% in Q4 to $1.586 billion and for the full year by 6% to $4.995 bn. Revenue from music publishing operations was up sharply in both the 4th quarter and the full year results, increasing by 17% and 14% respectively, or $298 million for the quarter, and $1.088 billion for the full year.
“We delivered on our promise of second-half improvement and reached over $6 billion in annual revenue for the first time in WMG’s history,” said Robert Kyncl, CEO, Warner Music Group. “As the music ecosystem is recognizing the value of premium content and emerging markets continue to gain traction, our industry is healthy and growing. With these tailwinds at our back, we’ve been working hard to build a WMG that will excel in the music industry of tomorrow and look forward to bringing you incredible music in 2024 from our extraordinary artists and songwriters.”
“Our performance in the quarter was underpinned by a solid release slate and momentum in our Recorded Music streaming growth,” said Bryan Castellani, CFO, Warner Music Group. “This fueled our second-half improvement which, combined with our disciplined cost management, resulted in robust Adjusted OIBDA growth and margin expansion for the full year. We are excited about the opportunities that lie ahead for WMG to capitalize on favorable industry trends and drive shareholder value through profitable growth and healthy cash flow conversion in 2024 and beyond.”
