Warner Music Group 2018 Revenue Tops $4B

• Total revenue for the full year grew 12.0% or 9.2% in constant currency
• Digital revenue for the full year grew 20.4% or 18.5% in constant currency
• Net income for the full year was $312 million versus $149 million in the prior year
• OIBDA for the full year was $478 million versus $473 million in the prior year
• Total revenue for the quarter grew 13.3% or 14.8% in constant currency
• Digital revenue for the quarter grew 21.4% or 23.1% in constant currency
• Net loss for the quarter was $13 million versus $38 million in the prior-year quarter
• OIBDA for the quarter was $72 million versus $60 million in the prior-year quarter

Warner Music Group Corp. today announced that in 2018 its revenue exceeded $4 billion for the first time in company history during its call for fourth-quarter and full-year financial results for the period ended September 30, 2018. It also noted that streaming revenue is up 20.4% (18.5% in constant currency).

“We’ve had another terrific year and revenue exceeded $4 billion for the first time in our 15-year history as a standalone company,” said Steve Cooper, Warner Music Group’s CEO.  “We continue to invest in our business for the benefit of our recording artists and songwriters and to fuel our long-term growth.”

“The fact that we ended the year with over $500 million in cash, despite significant spend on A&R, marketing, M&A and dividends, is evidence of the underlying strength of our business,” added Eric Levin, Warner Music Group’s Executive Vice President and CFO.  “We’re on a great run and I’m looking forward to many more years of success.”

Answering a question about whether streaming revenue will begin to fall off in the coming months, Cooper said he expects it to “grow in a robust way,” noting that it will slow down over time in western countries as saturation begins. In emerging markets, he said, revenues and subscribers are “just now being tapped and I would expect to see growth,” noting that economics will probably be “reduced” by comparison, and “we can expect over a time a more modest trajectory.”