Warner Music Quarterly Revenue Rises, But Earnings Shrink

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The music major's revenue grew 4 percent, but net income fell 69 percent due in part to foreign-exchange impacts on the company's Euro-denominated debt.

reported fiscal fourth-quarter revenue of $1.63 billion, up 4 percent from a year ago, but net income of $48 million fell 69 percent from $154 million a year ago.

The bottom line drop disclosed on Thursday was put down to higher interest expense and the impact of exchange rates on the company’s Euro-denominated debt, producing a loss of $35 million in the quarter, against a gain of $25 million in the prior-year quarter. Recorded music revenue rose 4 percent to $1.33 billion on growth across licensing, digital, physical and artist services and higher rights revenue. That was offset by music publishing revenue off 1 percent to $295 million due to the end of a distribution agreement with BMG, which meant $25 million less in overall revenue.

“We continue to evolve WMG, based on the principle that simplicity and focus drive higher intensity and global impact. This is enhancing our ability to attract original artists and songwriters at all stages of their careers, helping them realize their musical visions, and grow passionate, loyal fanbases,” he added.With Max Launching in 7 Asian Markets, Warner Bros. Discovery Eyes Rapid Growth for Streamer: “This Is a Big One”.

 

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