Powered by Publishing, Warner Music Posts $1.42 Billion in Revenue for Third Quarter

variety.com:

Jem Aswad Senior Music EditorDespite some “headwinds” including an unusually strong dollar, a lighter-than-usual release schedule and several short-term expenses, Warner Music posted a solid third quarter of 2022, with a strong showing from its publishing division and 12% revenue growth that the company stressed would have been closer to 15% if not for the above factors.

The company also announced a new deal with Meta (formerly Facebook) and several upcoming legal settlements that it says will bring in $25 million in OBITDA, both of which will have a strong impact on Q4.“We delivered solid double-digit growth on a constant-currency basis, even against the backdrop of a slowdown in the advertising market and some one-time items affecting year-over-year comparisons,” said Steve Cooper, CEO, Warner Music Group. “In June, we saw the beginning of a new wave of amazing releases and we’re looking forward to a strong end to our fiscal year.

Long term, we have the scale to best capitalize on trends in artist development, and the agility and resources to continue to propel the globalization and diversification of our business.” The company also pointed to forthcoming releases expected from Cardi B, Panic at the Disco, Megan Thee Stallion and Argentine rapper Paulo Londra.Revenue was up 6.9% (or 12.1% in constant currency), which the company says was driven by continued recovery of recorded-music artist services and expanded-rights revenue, which was impacted by COVID in the prior-year quarter and increased 42.9% (or 55.7% in constant currency).This was despite streaming revenue growth of just 2.7% (or 6.5% in constant currency), primarily driven by growth in publishing streaming revenue of 29.6% (or 34.6% in constant currency),.