Warner Music Posts Strong Quarterly Earnings, Stock Climbs
08.08.2023 - 15:59
/ variety.com
Jem Aswad Executive Editor, Music After a couple of sub-optimal quarters, Warner Music Group posted strong results on Tuesday morning, giving the company’s stock a healthy 5% bump following the announcement. The company’s stock rose as high as $33.29.
Revenue for the quarter, which ended June 30, was up 9 percent (10 percent in constant currency) to $1.56 billion, powered by a 7.8 percent bump in recorded music and a 5.6 percent increase in digital revenue, which includes a 6.3 percent boost in streaming revenue. Music publishing revenue was up a big 15.5 percent.
Ed Sheeran, Linkin Park and Melanie Martinez were among the quarter’s top releases, according to the announcement. “Our third-quarter results were driven by a wide diversity of music, and our strength came from many different territories, labels, and revenue lines,” said CEO Robert Kyncl.
“We succeeded with artists and songwriters across the spectrum of genres and generations, with both new releases and catalog projects.” He also noted the company’s recent deal with TikTok — which remains among the strongest sources for music — and praised the recent rise in subscription prices from streaming services. “Last month, Tidal, YouTube and Spotify all followed Apple, Amazon and Deezer by upping their prices,” he said. “This is the fiscally responsible thing to do – for themselves and for the creative community. I’d like to thank them all for taking this important step. “Back in March, I said that if we just adjusted for inflation since 2011 – the year that music streaming was introduced in the U.S.
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