NEW YORK (CelebrityAccess) — Warner Music Group has announced the results of its second fiscal quarter for 2023, reporting modest revenue growth during the period. The company said it generated revenue of $1.399 billion during Q2, up by 2 percent over the same quarter in 2022. However, for the first half of the year, revenue slid by 3%, falling from $2.99 billion in 2022 to $2.887 billion in 2023.
Operating income during the quarter fell by 25% from $166m in 2022 to $124m in Q2 2023. Net income plummeted from 92 million during the second quarter of 2022 to just $37 million year-over-year.
Revenue from recorded music during the quarter remained flat at $1.143 billion, while revenue from digital increased by 1% year-over-year to $942 million. Warner attributed the recorded music results to a lighter release calendar along with a slowdown in ad spending during the second quarter and noted that the foreign currency exchange rate continued to present challenges.
Music publishing was the bright spot for Warner during the second quarter, generating $257m, up by 12% from the same period last year. The company said results in its music publishing business were bolstered by double-digit increases in mechanical licensing and performance, but were weighed upon by expanded-rights, artist services, and sync revenue.
Robert Kyncl, CEO of Warner Music Group, expressed optimism about the second half of the year, noting the momentum in music publishing and the return of worldwide superstars and new artists breaking globally. He said, “It only increases conviction in our tech-enabled strategy.”
Eric Levin, CFO of Warner Music Group, said the company’s fiscal discipline enabled it to deliver solid Adjusted OIBDA growth and margin expansion, despite macroeconomic, currency, and release slate headwinds that impacted revenue in Q2. “As we look to the future,” he said, “we’ll combine A&R and marketing excellence with tech innovation to achieve greater efficiency, scale, and growth.”