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Sep 30, 2020
WMG Q4 2020 Earnings Report
Announced fourth-quarter and full-year financial results, demonstrating growth in streaming revenue and digital revenue, offset by declines in other areas due to COVID-19 impacts.
Key Takeaways
Warner Music Group's Q4 2020 results showed a slight increase in revenue, driven by streaming and digital growth, which was partially offset by COVID-19 related business disruptions. The company achieved significant growth in OIBDA and Adjusted EBITDA, reflecting strong operating leverage and digital transformation initiatives.
Total revenue increased by 0.2%, but decreased by 1.1% in constant currency.
Digital revenue grew by 15% and contributed 65% of total revenue.
OIBDA increased by 63% to $155 million.
Adjusted OIBDA increased by 35% to $174 million.
WMG
WMG
WMG Revenue by Segment
Revenue by Segment
Recorded Music Revenue
CapyFin.comMusic Publishing Revenue
CapyFin.com Forward Guidance
Warner Music Group is confident in its long-term growth prospects, particularly as the areas of its business that have been most impacted by COVID-19 return to normal.
Positive Outlook
- Continued momentum in streaming.
- Operating leverage driven by digital transformation.
- Business optimization initiatives.
- Expected recovery in COVID-19 impacted business areas.
- Strong growth in emerging revenue streams like social media and gaming.
Challenges Ahead
- Unfavorable impact of exchange rates on euro-denominated debt.
- Potential for continued COVID-19 related business disruption.
- Decrease in performance, synchronization and mechanical revenue.
- Decline in artist services and expanded-rights revenue due to tour postponements.
- Decrease in licensing revenue due to lower advertising and film deal activity.