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Warner Music Group, home to the likes of Cardi B, Ed Sheeran and Bruno Mars, reported a third-quarter increase in revenue and earnings on Tuesday as music publishing revenue rose 30 percent and setbacks in some business sectors that were previously affected. The covid epidemic.

He also cited “undergoing growth despite promotional pressures” amid the economic cloud.

Revenue for the latest period that ended in June was $125 million, more than double the $61 million earned in the previous year, the company said before the stock market opened. Adjusted income rose 77 percent from $83 million to $147 million. The increase was due to increased revenue and a “positive impact of exchange rates on the company’s euro-denominated debt and debt expense losses in the quarter.” the past.”

Warner Music CEO Stephen Cooper told analysts that his company is well-positioned to weather any threat of a recession. “Music is an important need for human beings. This need has and will continue to make the music industry more resilient than many other industries,” he said.

Cooper also pointed to the underlying strength of the Warner Music group in the last financial quarter, including expanded opportunities in social media games, NFTs, vinyl record sales and a “bounce back” in revenue. related to tourism.

The company faced headwinds in the most recent quarter, however, including the impact of a strong U.S. dollar on revenues converted from the Japanese yen and Chinese yuan, a major album release from Cardi B, Lizzo, Argentinian artist Paulo Londra and other artists who are changing. to the fourth quarter, the continued suspension of Russian operations and a deep decline in advertising revenue.

CFO Eric Levin told analysts that revenue growth will rebound in the fourth quarter on the strength of new albums and delaying the release of new deals with online platforms, including the virtual world The Sandbox. “We are very confident about the resilience of music and the impact of Warner Music’s strategy. We have a strong schedule for Q4 and we look forward to further strong growth,” Levin said, echoing Cooper’s earlier comments to analysts.

Warner Music’s chief financial officer added that revenue growth, a larger share of overall music revenue compared to revenue that supports advertising, will continue to grow through fiscal 2023. Levin said Warner Music will continue to monitor advertising, as it comes out. platforms like the Web. 3 and the metaverse and its virtual worlds will take time to build interactive communities of fans that create permanent commercial products.

“I would say stay calm and we hope to have exciting news as our tests reach the market and provide results,” said Levin. He also reported that the art business, which does business and marketing for music artists, has returned to pre-pandemic revenue levels after a hiatus during the COVID-19 crisis as artists stopped touring.

Quarterly operating income before depreciation and amortization (OIBDA), another measure of profitability, fell 3.3 percent though, or 2.6 percent in constant currency, to $233 million, “primarily the result of the combination of revenues due to the increase in the value of the merchant. Operations and the expansion of the rights-of-funds and the negative effect of exchange rates, part of the mark-to-market effect of the market related to the acquisition. ” Adjusted OIBDA for the third fiscal quarter decreased by 3.0 percent to 255 million dollars, or increased by 2.4 percent in the volume.

Operating income for the quarter fell 10 percent to $146 million, with adjusted operating expenses down 8.7 percent to $168 million due to similar OIBDA factors and “higher operating expenses.” amortization due to acquisitions and expenses,” said the company.

Music majors posted a 6.9 percent increase in revenue, or 12.1 percent on a constant currency basis, for the most recent quarter to June 30 to $1.43 billion amid a big jump in music publishing, and digital music development.

In recorded music, top sellers in the fiscal third quarter included Ed Sheeran, Dua Lipa, Tatsuro Yamashita, GOT7, Jack Harlow and Gunna. Record music revenue in the second quarter increased by 3.2 percent, or 8.5 percent in daily currency, to $1.19 billion “due to technical activity and increased rights development… – quarter year.”

Digital revenue represented 67.4 percent of total recorded music revenue in the last quarter, down from 70.7 percent in the year-ago quarter. Physical revenue fell 5.4 percent in the most recent quarter, or up 1.7 percent from the previous quarter, as a negative impact of exchange rates was offset by higher sales. growth “due to the success of new exports in Asia,” the company said.

Adjusted quarterly OIBDA in the recorded music division fell 9.1 percent, or 4.1 percent in adjusted earnings, to $231 million. national technical activities and revenue enhancement rights rights rights rights rights rights rights rights exchange.”

Meanwhile, music publishing revenue jumped 29.6 percent, or 34.6 percent on a like-for-like basis, to $245 million in the fiscal third quarter, “boosted by digital growth, operating and revenue synchronizing income, part of the decline in machine income.” Digital revenue here grew by 27.4 percent, or 32.1 percent on a constant basis, with an increase of 29.6 percent, or 34.6 percent, due to continued media growth and the timing of new deals. digital, etc.

Adjusted for the CRB Rate Benefit, revenue increased by 13.9 percent (or 18.3 percent in constant currency). Digital revenue represented 58.8 percent of Music Publishing’s total revenue versus 59.8 percent in the year-ago quarter. The slight decrease in digital revenue as a percentage of Music Publishing’s total revenue was due to an increase in operating revenue as bars, restaurants, concerts and events continued to recover from the disruptions of COVID . Co-working revenues increased due to major television and commercial licensing activities. Machinery revenues decreased primarily due to unfavorable exchange rate effects.

Quarterly adjusted OIBDA in the publication jumped 29.5 percent, or 32.6 percent on a constant basis, to $57 million, with top performers praising its “strong performance, in part of mixed income and the ineffectiveness of the exchange rate.”

In pre-market trading, Warner Music shares were down 3 percent.

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