Warner Music Group has announced its financial results for the company’s fiscal fourth quarter and full year 2020. In fiscal Q4, revenue was up 0.2 percent to approximately $1.126 billion. Net income was $1 million compared to $91 million in the prior-year Q4, primarily due to issues related to debt, loans and taxes. Recorded music was up 0.5 percent to $958 million in the quarter and major sellers included Dua Lipa, Roddy Ricch, Tones and I, Aimyon and Cardi B.
For the full fiscal year, WMG total revenue fell by 0.3 percent to approximately $4.463 billion. The company took an net loss of $470 million, compared to $258 million in net income in 2019. This was also due to issues surrounding the company’s debts and loans, as well as tax changes. In the full year, recorded music revenue was down by 0.8 percent to $3.81 billion.
“We’re proud of everything we’ve accomplished in the past year, despite the challenging conditions that the world has faced. We’re essentially flat against a record-breaking prior year and, during the quarter, we grew 11% on an as-reported basis, excluding the revenue streams most impacted by COVID,” said Steve Cooper, CEO of Warner Music Group. “We’ve had huge successes from global megastars and local hitmakers, breakout sensations and long-time legends. Our streaming growth has stayed strong, and we’ve also seen an acceleration in a whole spectrum of emerging revenue streams such as social media, gaming, and in-home fitness. In this increasingly complex environment, where music is woven into every aspect of our lives, our creative expertise and global reach are more valuable than ever.”
“Our results are underpinned by the continued momentum we are seeing in streaming and the operating leverage driven by our digital transformation and business optimization initiatives,” added Eric Levin, EVP/CFO of Warner Music Group. “As we look toward the future, we are confident in our long-term growth prospects, particularly as the areas of our business that have been most impacted by COVID return to normal.”
