Ed Sheeran’s return to the spotlight with ‘Divide’ was a particularly bright point for Warner Music Group, which reports its eighth consecutive quarter of year-on-year growth and gains in recorded music across all major regions.
Sheeran was singled out, along with Bruno Mars, Gorillaz, Clean Bandit and TWICE, as the music major registered total revenue growth of 13.1% to US$770 million for its fiscal third quarter, or a rise of 15.5% in constant currency against the corresponding period last year.
Also during the period, digital revenue rose 30.2% (or 33% in constant currency) and digital now represents the biggest piece of the pie, accounting for more than 54% of total revenue, against 47% in same quarter in 2016. It’s the second consecutive quarter where digital revenue exceeded 50% of the company’s total revenue (digital generated 53.2% of Q2 revenues).
Not surprisingly, WMG’s CEO Steve Cooper was upbeat on the latest results. “Our momentum continues with our eighth consecutive quarter of revenue growth – the last seven of which were up double digits,” he said in a corporate statement. “Our artists and songwriters are creating great music and our team is outperforming in a growing industry.”
“I’m proud of our team for delivering such strong results, particularly against difficult comparisons in the prior-year quarter,” added Eric Levin, Warner Music Group’s Executive Vice President and CFO. A confident Levin says he expects 2017 will be “another strong year.”