RadioandMusic
| 23 Sep 2019
Warner Music GroupÆs sees 10.9 per cent increase in digital revenue

MUMBAI: Warner Music Group (WMG) recorded a total revenue growth of 5.4 per cent (5.2 per cent on a constant-currency basis) in the financial year that ended on 30 September 2014. Excluding PLG (Parlophone Label Group), WMG's total revenue declined 3.7 per cent (3.8 per cent on a constant-currency basis). The label witnessed a growth of 9.9 per cent (9.4 per cent on a constant-currency basis) on their total international revenue, however, domestic total revenue declined by 1.7 per cent.
 
This fiscal year, WMG's total revenue was $3,027 million and last year it was $ 2, 871.
 
The growth for the company was driven by the addition of PLG, increases in recorded music digital and licensing revenue and artist services and expanded-rights revenue as well as music publishing digital, performance and synchronisation revenue.  There was a decline in revenue in areas like recorded music physical revenue and music publishing mechanical revenue, which did not really affect the growth of WMG.
 
Meanwhile, the last quarter of the financial year that ended on 30 September 2014, total revenue grew by 0.9 per cent (0.1 per cent on a constant-currency basis).  Domestic total revenue grew 2.1 per cent and international total revenue declined by 0.4 per cent (1.6 per cent on a constant-currency basis). The recorded music revenue declined in markets like Japan and France, but there was growth in markets like U.S., UK, Germany and Italy.
 
In the fourth quarter, digital revenue grew by 6.4 per cent (9.9 per cent on a constant currency basis) to $301 million as compared to $283 million in the same quarter last year. The digital revenue represented 39 per cent of total revenue for the quarter, compared to 37 per cent in Q4 2012-13. The growth in digital revenue is driven by the growth in streaming services. In the year 2013-14, digital revenue increased by 10.9 per cent (9.9 per cent on a constant-currency basis).
 
The operating income for Q4 2012-13 was $24 million as compared to operating loss of $41 million in Q4 2013-14. Operating income before depreciation and amortisation (OIBDA) increased to $107 million from $36 million in the prior-year quarter.  For the fiscal year, operating income was $19 million versus $75 million in the prior year.  OIBDA for the financial year was $340 million, up by 2.1 per cent from $333 million in the previous year.
 
Recorded music revenue grew 5.7 per cent, however, excluding PLG, recorded music revenue declined by 5.3 per cent. The recorded music licence revenue went up this fiscal. Coldplay, Ed Sheeran, Bruno Mars and Jason Derulo, were the major contributors. There was an increase of 2.8 per cent in music publishing revenue. The increase in music publishing revenue was driven by a 16.9 per cent increase in digital revenue, a 4.6 per cent increase in performance revenue and a 4.1 per cent increase in synchronisation revenue. This growth was partially offset by a 10.6 per cent decline in mechanical revenue. Music publishing digital revenue represented 18.8 per cent of total music publishing revenue in the current fiscal year, up from 16.5 per cent in the prior fiscal year.
 
Warner Music Group's CEO Stephen Cooper said, "We are proud of everything we accomplished this year. We had great success with artists at all stages of their careers, breaking amazing new talent as well as taking our established roster to new heights.  At the same time we expanded our digital footprint, announced several groundbreaking partnerships and pushed into emerging markets, ensuring we are well positioned to capitalise on future growth opportunities as the industry evolves and streaming services achieve scale."
 
 WMG announced its fourth-quarter and full-year financial results for the period ended September 30, 2014 on 11 December.