Warner Music Group reported fourth-quarter fiscal revenue of $1.63 billion, an increase of 4% year-over-year, but net income of $48 million, 69% from $154 million a year ago. decreased.
The decline in bottom line disclosed on Thursday was due to higher interest expense and exchange rate effects on the company’s euro-denominated debt, resulting in a loss of $35 million in the quarter compared to a profit of $25 million in the year-ago period. It became. .
Recorded music revenue increased 4% to $1.33 billion due to growth across licensing, digital, physical and artist services and higher rights revenue. This was offset by a 1% decrease in music publishing revenue to $295 million due to the termination of the distribution agreement with BMG, resulting in a $25 million decrease in overall revenue.
Top sellers for the quarter included Bruno Mars, Benson Boone, Charli XCX, Zach Bryan, and Teddy Swims. And Rose, a member of the K-pop girl group Blackpink, recently signed a solo act contract with Atlantic Records.
Major labels have seen their revenues rise in recent years due to rising prices for music subscription services and technological initiatives such as investments in artificial intelligence software and apps to reduce costs and boost market reach for creators.
“Our results this quarter and this year demonstrated our strength and adaptability in a thriving, fast-moving market,” Warner Music Group CEO Robert Kinkle said in a statement Thursday. said. “We will continue to evolve WMG based on the principle that simplicity and focus foster greater intensity and global impact, supporting original artists and songwriters at every stage of their career. “It strengthens their ability to attract and help them realize their musical vision and grow a passionate and loyal fan base,” he added.
Warner Music reported fourth-quarter streaming revenue for both recorded music and publishing rose 1% to $1.04 billion on strong releases and global subscriber growth. On a morning conference call with analysts, Kyncl cited the global prevalence of music content as digital and subscription revenue drives much of the growth for major labels. We are optimistic that there will be more new sources of income.
“[Music]becomes the soundtrack of everyone’s life, so they always find the next new source of income. The question is how often they come and how successful they are. We have two or three in mind, but we’re not ready to talk about anything publicly because it’s too early,” Kinkle said.
