Warner Music Group Losses Grow 300% Despite Revenue Increase
In its first report since acquiring the Parlaphone Label Group, Warner Music Group Corp. today announced its third-quarter financial results for the period ending June 30th. Despite a revenue increase of 16.9% on a constant-currency basis, net losses grew almost 300% to $184 million versus $62 million in the prior-year quarter. Digital revenue grew 26.1% representing 41.1% of total revenue.
Highlights:
- Total revenue increased 16.9% on a constant-currency basis
- Recorded Music revenue increased 20.8% on a constant-currency basis
- Cash balance increased to $142 million versus $102 million for the prior-year quarter
- OIBDA was $66 million versus $69 million in the prior-year quarter
- Net loss was $184 million versus $62 million in the prior-year quarter
Revenue Breakdown:
- Recorded Music revenue grew 22.8%
- Music Publishing revenue grew 2.2% due to strength in digital revenue
- Digital revenue grew 26.1% representing 41.1% of total revenue, compared to 38.8% in the prior-year quarter
- Growth in digital revenue reflects the acquisition of PLG as well as strong growth in streaming revenue. Excluding PLG, digital revenue increased 11.7%.
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