Home Entertainment The partnership between Ed Sheeran and Linkin Park helps increase Warner’s music revenue, supporting children’s charities

The partnership between Ed Sheeran and Linkin Park helps increase Warner’s music revenue, supporting children’s charities

Entertainment — 08/02/2024

 

The music major’s stock increased 5% to $32.10 in early trading on Tuesday.

 

 

To $1.56 billiоn, revenue increased 9 percent, or 10 percent in constant currencies, for the quarter ending June 30. This was the result of a 7.8 percent increase in recorded music revenue (or 8.6 percent in constant currency) and a 5.6 percent increase in digital revenue (or 6.8 percent in constant currency), which included a 6.3 percent increase in streaming revenue.

 

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Revenue from music publishing increased by 15.5% (or 16.0 percent denominated in constant currency), with digital and mechanical revenue growth contributing to the increase.

 

Comparatively, WMG’s quarterly net income of $124 million remained essentially identical from the previous year’s amount of $125 million. Another profitability metric, adjusted operating income before depreciation and amortization (OIBDA), increased by 16 percent, or 18 percent in constant currency terms, to $297 million.

WMG stated that the recorded music unit of the music major “featured successful releases from Ed Sheeran, Linkin Park, and Melanie Martinez during the quarter.”

“Our performance in the third quarter was propelled by a broad spectrum of musical genres, and our strength stemmed from numerous territories, record labels, and revenue streams,” Kyncl explained. “By collaborating with songwriters and artists spanning various generations and genres, we achieved success with both new releases and catalog initiatives.”

Chief financial officer Eric Levin remarked, “Our increased confidence in our full-year operating cash flow and margin targets is a result of solid growth across key metrics.” The executive concluded, “The ongoing evolution of our key partnerships and the market’s acceptance of subscription price increases provide us with tremendous optimism for the future of streaming growth.”

Kyncl further elaborated on the оutlооk, stating, “We anticipate our momentum to increase, propelled by our innovative campaigns and exceptional music, in addition to improving macro and industry trends.” “In pursuit of sustained success, we persist in investing in emerging creative talent, adapting our resources and expertise, and forging alliances with partners throughout the entertainment industry.”