Warner Music Group reported revenue of $1.7 billion in the company’s second quarter, WMG reported Thursday, an increase of 17 percent from a year ago.
Recorded music revenues similarly rose 17 percent, to $1.38 billion from $1.17 billion, and publishing revenues rose 14 percent to $453 million. Net income rose to $181 million from $36 million last year.
“Our second quarter results demonstrate a strong combination of creative and operational success, as well as financial discipline, providing clear evidence of the success of our strategic transformation,” WMG CEO Robert Kinkel said in a statement. “Through our three strategic pillars of growing share, increasing music value, and improving efficiency and effectiveness, our momentum is building and we are well positioned to continue delivering long-term value to our artists, songwriters and shareholders.”
Notably, in addition to the financial updates in its report, WMG also revealed that since establishing its $1.2 billion catalog acquisition joint venture with Bain Capital last year, it has already acquired $650 million in registered and publishing catalogs, though WMG did not include any details on what those deals were. Outside of the joint venture, Warner Music also acquired independent music distribution platform Revelator in April.
The earnings report came hours after WMG announced a new deal with Paramount for theatrical films. Back in March, WMG announced another first look with Netflix for the documentary content on its slate.
During the call, Kyncl cited upcoming releases from Charli XCX, Alex Warren and Sombre among others for generating more revenue for the third quarter.
Also on the call, Kyncl confirmed that CFO Armin Zerza will serve as COO as well, starting tomorrow.
“For the fourth consecutive quarter, we executed on our sustainable growth model, accelerating underlying growth and expanding margin and cash flow productivity,” Zerza said in a statement. “Behind a profitable growth engine that combines disciplined capital allocation and rigorous cost management with industry-leading creative and AI initiatives, we are well positioned to create significant long-term value for our shareholders.”
