NEW YORK (CelebrityAccess) — Boosted by a growth in digital streaming, Warner Music reported more than a billion dollars in quarterly revenue for the final quarter of 2017.
“This marks the first time in over 10 years that our quarterly revenue has exceeded a billion dollars”, added Eric Levin, Warner Music Group’s Executive Vice President and CFO. “Our cash flow is strong and we are committed to maintaining our momentum.”
Revenue for the quarter grew 14.0% to $1.045bn for the quarter, including a $13.4 percent improvement for the company’s recorded music business. Digital revenue was the key driver in the segment and up by a whopping 20% for the quarter, but was partially offset by continuing declines in physical sales, WMG said.
Recorded Music operating income was $129 million up from $123 million in the prior-year quarter and operating margin was down 1.1 percentage points to 14.3% versus 15.4% in the prior-year quarter. WMG attributed the decline in the margin to increased compensation expenses, more money invested in A&R and to a legal settlement.
Music Publishing revenue improved by 15.3% and grew in all segments – digital, performance, synchronization and mechanical.
Music Publishing operating loss was $1 million compared with a loss of $2 million in the prior-year quarter. Music Publishing OIBDA rose by $1 million to $17 million, and Music Publishing OIBDA margin declined by 1.0 percentage point to 11.9%, due to revenue mix and increased A&R spend.
“2018 is off to a great start. For three years running, we have grown revenue by double digits in the first quarter, a great testament to the sustainability of our success,” said Steve Cooper, Warner Music Group’s CEO. “Streaming is driving the industry and we continue to outperform thanks to fantastic new music and the strength of our worldwide operating team.”