Warner Music Revenue Grows on Streaming

Warner Music Group Corp. on Friday reported its profit fell 39% in the second quarter, though revenue surged as streaming became the top contributor to the top line.

"We are now the first major music company to report that streaming is the largest source of revenue in our recorded music business, surpassing our revenue from physical formats," Chief Executive Stephen Cooper said. "And this new milestone comes only four quarters after our streaming revenue first topped our download revenue."

Warner, the third-largest music company behind Vivendi SA's Universal Music Group and Sony Corp.'s Sony Music Entertainment, reported streaming revenue surpassed download revenue for the first time during the March quarter last year. For the latest quarter, digital revenue climbed 20%, or 23% on a constant-currency basis.

In all for the quarter ended March 31, Warner Music posted a profit of $11 million, down from $18 million a year earlier.

Revenue rose 10% to $745 million. Excluding currency effects, revenue rose 13% in the quarter.

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(END) Dow Jones Newswires

May 06, 2016 09:15 ET (13:15 GMT)

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