NEW YORK (CelebrityAccess) — Warner Music Group revealed the results for their third fiscal quarter with revenue growing substantially and the label giant tipping over into a profit for the period.
According to WMG’s financial filings, the company reported revenue of $1.34 billion in Q3, a 33% improvement over the same quarter in 2020. The gains were driven by recorded music, which posted 34% year-over-year growth for the quarter and music publishing, which grew 27% year-over-year to $189 million for Q3.
Digital revenue continued to be a major factor for recorded music’s gains, growing 28.9% year-over-year and representing 69.3% of total revenue in the quarter, which was slightly lower than the same period in 2020.
Recorded Music artist services and expanded-rights revenue increased 7.3% on an as-reported basis (or 0.8% in constant currency), WMG said.
Net income for Warner Music was $61 million versus a net loss of $519 million in the prior-year quarter, the company said.
“We’re proud of everything we’ve accomplished during our first year as a publicly traded company,” said Steve Cooper, CEO, Warner Music Group. “During a very challenging time, we’ve focused on investing in our core business and building an array of innovative growth opportunities. Outstanding releases from our artists and songwriters, coupled with imaginative execution by our operators, delivered excellent results in the third quarter. We’re looking forward to wrapping up our fiscal year with a slate of great new releases from established and emerging stars.”
“The third quarter was highlighted by impressive streaming numbers, recovery in several areas that had been negatively impacted by COVID, and strong operating leverage that drove margin expansion,” said Eric Levin, CFO, Warner Music Group. “We continue to create value through our wide-ranging services to artists and songwriters, to drive shareholder return through our disciplined allocation of capital, and to deliver long-term growth through our digital-first approach to business.”