Warner Music's Loss Narrows on Streaming Revenue

By Joshua Jamerson 

Warner Music Group Corp. on Thursday reported its loss narrowed substantially in the latest period as revenue surged, thanks again to streaming.

"With our recorded music streaming revenue now approaching double the size of our download revenue, and still growing fast, we are on course for another excellent year," Chief Executive Stephen Cooper said.

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 21%, or roughly 23% on a constant-currency basis, reflecting the shift to streaming revenue.

In 2015, the industry's global revenue from recorded music grew 3.2% to $15 billion, the first significant increase after two decades of declines or negligible gains, according to the International Federation of the Phonographic Industry's annual report released earlier this year. The uptick is due in large part to a 45% increase in streaming revenue, which now amounts to $2.9 billion and makes up nearly half of the world's digital-music revenue.

Warner Music, for the quarter ended June 30, posted a loss of $7 million, compared with $43 million a year ago. Revenue grew 14%, or 15% in constant currencies, to $811 million. Digital revenue made up 47% of the total top line.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

August 04, 2016 09:26 ET (13:26 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.