Warner Music’s New CEO Robert Kyncl Targets “Next Phase of Our Evolution,” Notes “Challenging Business Environment”

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Fiscal first-quarter financials for the music major fell; top sellers included the Red Hot Chili Peppers, Zach Bryan, Lizzo and Ed Sheeran.

, Cardi B and Bruno Mars, reported lower fiscal first-quarter revenue and earnings on Thursday as new CEO Robert Kyncl set his sights on “the next phase of our evolution,” while also highlighting “a challenging business environment.”

The latest quarter was hit by timing factors as the comparable year-ago period included an additional week, as well as foreign currency impacts. Revenue for the quarter ended on Dec. 31 fell 8 percent, or 3 percent in constant currencies, to $1.49 billion. That was driven by an 11 percent drop in recorded music and a 5 percent decline in digital revenue, including a 4 percent drop in streaming revenue. WMG noted though that “underlying growth in total streaming revenue despite a challenged macroeconomic environment.” Music publishing revenue rose 9 percent .

 

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