Warner Music Group hits $3b revenue for first time in 10 years

An interim report of Warner Music Group’s upcoming full financial report for the year sees its recorded music revenues hit above US$3 billion.

According to Music Business Worldwide, this is the major label’s highest revenue for the first time in over ten years.

The figures cover the 12 months to the end of September.

MBW additionally observes that in the update, Warner expected its revenue to be in the range of between $3.01 billion and $3.03 billion.

That represents an uptick of 10.4% year-on-year.

The growth would be attributed to streaming, as well as a stellar performance with Atlantic Records, whose acts as Ed Sheeran, Lil Uzi Vert, Cardi B and Clean Bandit have set the charts around the world on fire.

Within these figures, its publishing division Warner/Chappell posted annual revenues between $569 million and $574 million in FY2017, up around 9.2% year-on-year.

However, WMG’s profit will drop between $468 million and $478 million in FY2017 due to “the impact of higher deferred variable compensation expense, primarily associated with the increase in the fair value of equity” in addition to “higher investment in A&R”.