Warner Music Group (WMG) home to artists including Ed Sheeran, Coldplay, Dua Lipa and Kylie Minogue has topped market expectations in releasing its latest financial results.
Total revenue at the group in the third quarter grew 7% or 12% in constant currency while digital revenue was up slightly to 2% in the increasingly competitive music market. Revenue for the quarter came in at $1.43 billion (£1.18 billion) compared to $1.34 billion in the same quarter last year.
Net income at WMG during the period was $125 million versus $61 million in the prior year’s comparative quarter.
The upping of the group’s fortunes rode on the back of the higher revenue and “the favorable impact of exchange rates on the company’s euro-denominated debt and a loss on extinguishment of debt in the prior-year quarter.”
Steve Cooper, boss of Warner Music Group, who told analysts that music was a “an essential need for humanity” when ask if his company was readied for an impending recession, said: “We delivered solid double-digit growth on a constant-currency basis, even against the backdrop of a slowdown in the advertising market and some one-time items affecting year-over-year comparisons.
“In June, we saw the beginning of a new wave of amazing releases and we’re looking forward to a strong end to our fiscal year. Long term, we have the scale to best capitalize on trends in artist development, and the agility and resources to continue to propel the globalization and diversification of our business.”
Eric Levin, chief financial officer of the business, said: “Our third-quarter results reflect the inherent resilience of our business that comes from our diverse portfolio of revenue streams,” said Eric Levin, chief financial officer of the business.
“With significant runway ahead in our core streaming business and new growth vectors constantly emerging, we are incredibly bullish on our growth potential for many years to come.”