Major Labels

Warner Music Group reports solid Q4, Year

Warner Music Group reported a solid quarter and year this morning. Overall WMG revenue was up 21% last quarter and 15% year on year on a constant currency basis.

“Our strong fourth-quarter results put an exclamation point on an outstanding year,” said Lou Dickler, Acting CFO, Warner Music Group. “Even as certain revenue was impacted by COVID, the strength and resilience of our music propelled us to double-digit revenue growth and margin expansion in 2021.”

During the earnings conference call, WMG CEO Steve Cooper teased a “major announcement” later this week related to alternative revenue streams for the company.

Ad revenue currently contributes $100 million annually to WMG’s bottom line, according to today’s call.

Financial Highlights

  • Continued Momentum Across Traditional and Emerging Streaming Platforms Drove Double-Digit Digital Revenue Growth for the Quarter and Full Year
  • Recovery in COVID-Impacted Areas Led by Strong Growth in Artist Services and Physical Revenue
  • Delivered Margin Improvement and Double-Digit Growth in Adjusted OIBDA and Adjusted EBITDA
  • Robust Free Cash Flow Conversion and Growth Underpinned by Strong Operating Leverage and Financially Disciplined Investments

For the three months ended September 30, 2021

  • Total revenue grew 22% or 21% in constant currency
  • Digital revenue grew 19% or 18% in constant currency
  • Net income was $30 million versus $1 million in the prior-year quarter
  • OIBDA increased 15% to $179 million versus $155 million in the prior-year quarter
  • Adjusted OIBDA increased 25% to $218 million versus $174 million in the prior-year quarter
  • Adjusted EBITDA increased 34% to $237 million versus $177 million in the prior-year quarter

For the twelve months ended September 30, 2021

  • Total revenue grew 19% or 15% in constant currency
  • Digital revenue grew 22% or 19% in constant currency
  • Net income was $307 million versus net loss of $470 million in the prior year
  • OIBDA was $915 million versus $32 million in the prior year
  • Adjusted OIBDA increased 29% to $1,018 million versus $790 million in the prior year
  • Adjusted EBITDA increased 30% to $1,090 million versus $837 million in the prior year

Bruce Houghton on 11/15/2021 in Major Labels | Permalink | Comments (0)
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