Photo by Jared Siskin/Getty Images for Warner Music Group
Warner Music Group's 2018 Revenue Exceeds Company History
“We’ve had another terrific year and revenue exceeded $4 billion for the first time in our 15-year history as a standalone company,” Warner Music Group CEO Steve Cooper said in statement. “We continue to invest in our business for the benefit of our recording artists and songwriters and to fuel our long-term growth.”
The results are from the company's fourth-quarter and full-year finance period that ended on Sept. 30, 2018.
Warner Music Group's total revenue for the full year rose 12.0% (9.2% in constant currency or the amount without the effects of fluctuations). Domestic revenue grew 10.5 % and internationally grew 12.7 % (7.8% in constant currency).
Digital revenue for the full year rose 20.4% (18.5% in constant currency) and represented 56.2% of the total revenue versus the 52.3% it represented last year.
Net income for the full year was $312 million, increasing from the $149 million made the year before.
Operating income went down, coming in at $217 million this year compared to $222 million last year. The operating margin went down 5.4%, compared to 6.2% last year due to being "driven by higher revenue which was more than offset by increased investment in A&R and marketing as well as higher SG&A expenses including for variable compensation, restructuring and facilities expenses related to the Los Angeles office consolidation," the company stated.
For the quarter, net loss for the entire quarter was $13 million, a decrease from the $38 million net loss in the prior year quarter.
Revenue rose 13.3 % (14.8% in constant currency,) and digital revenue went up, growing 21.4 % (23.1% in constant currency.)
Recorded music revenue rose 12.5 % for the quarter. According to Variety, Cooper credited the success of recorded music to Cardi B, Ed Sheeran, Bruno Mars and The Greatest Showman soundtrack (on Atlantic) and Dua Lipa, Lil Pump and Bebe Rexha (on Warner Bros., as well as Dan and Shay (on Nashville).
A decline in recorded music physical revenue somewhat offset the "growth in Recorded Music digital, licensing and artist services and expanded-rights revenue and growth in Music Publishing digital, performance, synchronization and mechanical revenue were partially offset by a decline in Recorded Music physical revenue."
For a look at the complete report, go here.