Warner Music Group (WMG) generated $2 billion in streaming revenues in the 12 months to end of September.
The news came in WMG’s fourth-quarter and full-year financial results, which were published today (November 27), with the music company also reporting $258 million net profit for the full year.
Across its FY 2019, WMG’s recorded music revenue rose 14.3% (or 17.2% in constant currency) to $3.84bn.
Music streaming services like Apple Music and Spotify contributed $2.12bn, up by $396m on FY 2018.
Major sellers included Ed Sheeran, Johnny Hallyday, The Greatest Showman soundtrack, Cardi B and Meek Mill.
WMG’s total music publishing revenue was $643m, down $10m on the prior year, while music publishing digital revenue (from streaming services like Apple Music and Spotify) increased 14.3% (or 17.3% in constant currency) from $237m in FY 2018 to $271m.
Revenue from digital sources represented 42.1% of total music publishing revenue versus 36.3% in the prior year.
Operating income for FY 2019 was $356m, up from $217m in the prior year and operating margin was 8% up from 5.4% in the prior year, driven by higher revenue, lower variable compensation expense and a $15m benefit from ASC 606 which were partially offset by higher product costs related to revenue mix.
Q4 recorded music revenue grew 10.4% (or 12.4% in constant currency) to $863m
That revenue included $54 million related to the acquisition of EMP.
Growth in digital and artist services and expanded-rights revenue was partially offset by a decline in physical revenue.
The increase in artist services and expanded-rights revenue was attributable to the acquisition of EMP and higher touring and merchandising revenue.
WMG reports that recorded music revenue grew in all regions.
Major sellers in Q4 2019 included Ed Sheeran, Lizzo, Mariya Takeuchi, Slipknot and Cardi B.
“We are passionate champions for our recording artists and songwriters and work tirelessly to help them build long-term global careers.”
Steve Cooper, Warner Music Group
“We are passionate champions for our recording artists and songwriters and work tirelessly to help them build long-term global careers,” said Steve Cooper, Warner Music Group’s CEO.
“Their talent and our focus and dedication made for an excellent fiscal year, and we’re excited by the multitude of growth opportunities which lie ahead in 2020 and beyond.”
“With $619 million on our balance sheet at year-end, the cash generating power of our business has never been clearer.”
Eric Levin, Warner Music Group
“Our revenue and OIBDA performance was strong,” added Eric Levin, Warner Music Group’s Executive Vice President and CFO.
“With $619 million on our balance sheet at year-end, the cash generating power of our business has never been clearer.”Music Business Worldwide