Warner Music Group turns 2016 profit with boost from streaming revenue

wmg logo canvasWarner Music Group posted its financial results for the fourth quarter and the fiscal year, and streaming played a large part in the company’s strong results. For the fourth quarter, total revenue increased 12.1% and digital revenue rose 23.1%. Warner did post a loss for that period, but it was $3 million rather than $23 million in the year-ago period. Total revenue for the full fiscal year grew 9.4%, or 13.1% in constant currency. Warner also generated net income of $30 million for the year, reversing last year’s net loss of $88 million.

Digital revenue increased 21%, or 24.3% in constant currency, for the year. The label didn’t break out specific numbers for streaming’s contribution, but did acknowledge its role in more general terms. “Digital growth reflects a continuing shift to streaming revenue,” the press release read. That’s a continuing of the quarterly trends for Warner’s streaming performance. Its streaming revenue grew 45% on-year in Q3 and was the top revenue source in Q2.

Anna Washenko