MUMBAI: Music Label Company Warner Music Group has reported positive revenues in quarter ended 31 March, 2015. The company witnessed 3.7 per cent growth in Q2 2015 with revenue of $ 677 million compared to $ 653 million in the same quarter of the previous financial year.
The company did not strongly grow in the digital space, recording around 1 per cent revenue with a total of $ 297 million. Warner Music pointed out that the digital revenue was made through previous releases from artists such as Ed Sheeran, Michael Bublé, Led Zeppelin and David Guetta, and through the continued growth in streaming. The financial stated that the revenue from streaming services grew by $ 25 million and was partially offset by digital download declines of $ 22 million. The company is expected to face a decline in download in the future as well.
Artists like Led Zeppelin and Kid Rock have contributed to the physical format revenues made by the label. The physical revenue grew by 8 per cent this quarter.
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The licensing business grew by 42 per cent from $ 55 million in Q2 2014 to $ 78 million in this quarter. An increase in synchronisation activity in the quarter, as well as the inclusion of PLG repertoire in broadcast fee income for the first time since the PLG acquisition in certain territories helped licensing revenue grow.
Through international recorded music and music publishing, the company reported 2 per cent growth. However, while recorded music grew by 4 per cent, the international music publishing business fell by 7 per cent this quarter.
Artist services and expanded-rights recorded an 11 per cent decline, with $ 55 million this quarter. Artist and repertoire costs decreased by $ 1 million, to $ 203 million for the three months ended 31 March, 2015 from $ 204 million for the same quarter last year. Selling and marketing expense decreased by $ 4 million, to $ 97 million for Q2 2015 from $ 101 million for the three months ended 31 March, 2014.
For six months, ended 31 March, 2015, total revenue grew by 3 per cent to $ 1,506 million from $ 1,468 million for six months ended 31 March last year.
Warner Music Group Stephen Cooper CEO said, “We experienced significant revenue growth this quarter across key segments of our business – in particular Recorded Music, across the US and international and across digital and physical – capping off a strong first half of our fiscal year.”
Cooper further added, “Notably, in this quarter we saw continued growth in streaming revenue which surpassed download revenue for the first time in the history of our recorded music business. Our commitment to being at the forefront of industry change as well as our ongoing investment in artist development is the foundation of our continued success.”
“We are proud of our team’s ability to deliver a healthy financial performance,” added Warner Music Group EVP and CFO Eric Levin. “We will continue to find opportunities for growth while carefully watching our costs.”
