WMG Reports Quarterly Loss

Warner Music Group Corp. swung to a loss in the most recent quarter, but revenue declined less than expected as streaming continued to surge despite the Covid-19 pandemic, reports The Wall Street Journal.

For the period ended June 30, digital revenue grew 11%, thanks to continued strength in streaming, the largest contributor to the top line and largely unaffected by the pandemic, Chief Executive Steve Cooper said on a call with investors. Listening on Spotify, Apple Music and other streaming services, as well as digital downloads, contributed 71% of total revenue, up from 61% a year ago.

Recorded-music revenue fell 5.7% as declines in physical sales, artist services and licensing revenue offset growth in streaming. Music publishing revenue grew 1.4% as digital revenue growth outweighed declines in royalties from the use of music in advertising and public settings such as gyms and bars, which were disrupted by fallout from the pandemic.

Warner Music, the third-largest recorded music company, is parent to labels Atlantic Records, Elektra Records and Warner Records, and also is home to Warner Chappell, the third-largest music publisher. The company’s top-selling artists in the period included Dua Lipa, Roddy Ricch, Lil Uzi Vert, Tones And I, and Ed Sheeran.