Ed Sheeran, Dua Lipa Releases Boost Sales – The Hollywood Reporter

Warner Music Group, the home of Cardi B, Ed Sheeran and Bruno Mars, reported higher fiscal third-quarter net income and revenue on Tuesday as music publishing revenue jumped 30% and rebounded in the US. Some parts of the business were previously affected by the covid Pandemic.

The company said net income for the most recent period ended in June amounted to $125 million, more than double the $61 million recorded in the same period a year ago, the company said. The stock market is open. Adjusted net income increased 77% from $83 million to $147 million. The improvements came amid higher revenue and the “favorable impact of the exchange rate on the company’s euro-denominated debt and insolvency last quarter.”

Quarterly operating income before depreciation and amortization (OIBDA), another profit measure, fell 3.3%, or 2.6% on a constant currency basis, to $233 million dollars, “primarily due to a mix of revenue due to the growth of artists with lower margins than services and revenue from extended rights and the adverse impact of exchange rates, which is offset partly by the effect of market adjustments on the liability earned in connection with the acquisition. Adjusted OIBDA for the fiscal third quarter fell 3.0 percent to $255 million, or increased 2.4 percent in constant currency.

Quarterly operating income fell 10% to $146 million, with adjusted operating income down 8.7% to $168 million due to similar factors affecting OIBDA and “higher depreciation costs.” due to recent acquisitions and capital expenditures,” the company said.

Music majors posted a 6.9% revenue increase, or 12.1% assuming constant currencies, for the latest quarter through June 30 to $1.43 billion amid Music publishing leapfrogged, as did recorded and digital music growth.

In the recorded music sector, the top sellers in the third fiscal quarter included Ed Sheeran, Dua Lipa, Tatsuro Yamashita, GOT7, Jack Harlow and Gunna. Music revenue recorded in the second quarter grew 3.2%, or 8.5% in constant currency, to $1.19 billion “due to artist services and revenue growth.” extended copyright…, reflecting an increase in concert promotion revenue, which had been disrupted by COVID -five quarters before. ”

Digital revenue fell 1.7%, or 2.2% in constant currency, with online revenue down 1.0% or up 2.7% in currency unchanged. “Adjusted for the impact of a new deal with one of the company’s digital partners and (a catch-up payout), recorded music streaming revenue grew 5.0%, or 9.2% in constant currency.” Digital revenue accounted for 67.4% of total music revenue recorded in the latest quarter, down from 70.7% in the previous quarter. Physical revenue fell 5.4% in the most recent quarter, or up 1.7% in fixed currencies, as the adverse impact of exchange rates was offset by higher sales.” due to the success of new releases in Asia,” the company said.

Quarterly adjusted OIBDA in recorded music fell 9.1%, or 4.1% in constant currency, to $231 million. Warner Music cites “a revenue combination driven by the growth of lower-margin artist services and revenue from expanded rights and the adverse impact of exchange rates.”

Meanwhile, music publishing revenue grew 29.6 percent, or 34.6% on a constant currency basis, to $245 million in the third fiscal quarter, “driven by sales growth.” digital acquisition, performance, and synchronization, partially offset by a decline in mechanical revenue.” Digital revenue here grew 27.4%, or 32.1% in constant currency, with streaming up 29.6%, or 34.6%, driven by growth continuity in terms of streaming and the timing of new digital transactions, among other factors. Adjusted for CRB Rate Benefit, streaming revenue grew 13.9% (or 18.3% in constant currency). Digital revenue accounted for 58.8% of total Music Publishing revenue compared with 59.8% in the previous quarter. The slight drop in digital revenue as a percentage of total revenue for Music Publishers was driven by increased performance revenue as bars, restaurants, concerts, and live events continued to recover from the crash. COVID. Synchronization revenue increased due to higher TV and commercial licensing activity. Mechanical revenue decreased mainly due to adverse impact of exchange rate.

Quarterly adjusted OIBDA in the music publishing sector grew 29.5%, or 32.6% in constant currency, to $57 million, with the music expert praising the “performance” strong operating margins, partially offset by a combination of revenue and the adverse impact of exchange rates.”

Management also touts its diversified business as aligning the company’s results with macroeconomic clouds.

Warner Music CEO Steve Cooper said: “We delivered solid double-digit growth on a constant currency basis, even amid a slowdown in the advertising market and a number of single-items. times affect year-to-year comparisons”. “In June, we saw the start of a great wave of new issuance and we are looking forward to a good end to our fiscal year.”

He added: “Over the long term, we have the scale to make the best use of artist development trends, agility and resources to continue driving globalization and diversifying our business. we.”

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