NEW YORK (CelebrityAccess) — Label giant Warner Music Group announced the financial results for the second fiscal quarter of 2020, with revenue taking a small hit.
According to Warner, revenue for the quarter slid by 1.7% as growth in recorded music revenue and music publishing digital revenue, sync and mechanical revenue was more than offset by declines in physical recorded music, artists services and expanded rights revenue, the company said.
According to Warner, their revenue was impacted by a lighter release schedule, as well as some COVID-related business disruption and foreign exchange rates in the current quarter.
They also noted that the quarter’s results from 2019 included a one-time boost from a digital streaming license.
Overall, digital revenue grew by 5.7% year-over-year for the quarter, and represented 65.3% of total revenue, compared to 60.6% in the prior-year quarter.
Warner also notched up a net loss of $74 million for the quarter after earning net income of $67 million in Q2 2019.
WMG attributed the loss to the company’s long term incentive plan and to COVID-related business disruption.
“We had a tough comparison with an especially strong Q2 in 2019, so I’m pleased that we’ve matched our excellent performance in the prior-year quarter, due in large part to an 11% increase in Recorded Music streaming revenue and a 17% increase in Music Publishing digital revenue. That’s a tremendous achievement, especially coming on the heels of Q1, when we achieved the highest quarterly revenue in our sixteen-year history as a standalone company,” said Steve Cooper, Warner Music Group’s CEO.
“In these unprecedented times, we’re determined to protect the livelihoods of our artists, our songwriters and our people. We’re confident that our distinctive combination of creative innovation and financial discipline will help us weather this storm and emerge stronger, better and more agile than ever,” Cooper added.