WMG Reports Strong Q3 Driven By Streaming Revenue
Warner Music Group Corp. today announced third quarter financial results for the period ending June 30, 2017. It was WMG's strongest quarter in years. Net income was $143 million, compared to a $7 million loss in the prior-year quarter.
Driving the growth was digital revenue, which grew 30.2% and represented 54.1% of total revenue, compared to 47.0% in the prior-year quarter. This is the second consecutive quarter where digital revenue exceeded 50% of the company’s total revenue driven by explosive growth in music streaming:
• Streaming accounted for 80% of total digital revenue growing to $360 million last quarter, up from $227 in Q3 2016.
• Download revenue fell 28% from the prior year quarter to $88 million
• Streaming is on track to contribute more than $1.35 billion to WMG total 2017 revenue in 2017
Music Publishing revenue rose 11.9%. Publishing revenue grew in performance and digital, but mechanical revenue declined due to the continuing shift to streaming. Synchronization revenue was flat. Music Publishing operating income was $6 million, flat with the prior-year quarter.
“I’m proud of our team for delivering such strong results, particularly against difficult comparisons in the prior-year quarter,” added Eric Levin, Warner Music Group’s Executive Vice President and CFO. “I’m confident that 2017 will be another strong year.”