Warner Music Group reported a successful fiscal Q2 for the company, as overall revenue rose 8.3 percent from $623 million to $675 million for the three-month period. Physical and digital Recorded Music revenue, Recorded Music licensing revenue and Music Publishing digital and performance revenue all increased. WMG also went from a net loss of $36 million one year ago to net income of $2 million.
Digital revenue for fiscal Q2 was up by 20 percent, from $235 million to $281 million. Digital revenue also represented 41.6 percent of total revenue for the quarter, compared to 37.7 percent in the prior-year quarter. The growth in digital revenue reflects growth in subscription and streaming revenue as well as download revenue.
Recorded Music revenue was up 11 percent to $554 million, with Digital revenue for recorded music increasing 18 percent to $262 million. Major sellers in the quarter included Bruno Mars, Josh Groban, fun., Ed Sheeran and BlakeShelton.
"We recorded an impressive quarter, thanks to great releases from our artists and excellent execution from our operators," said Stephen Cooper, Warner Music Group’s CEO. "These are the results of a very strong release schedule, solid performance from carryover releases and continued financial discipline."
"We achieved robust growth in OIBDA and OIBDA margin," added Brian Roberts, Warner Music Group EVP/CFO. "And we realized strong free cash flow of $121 million, closing the quarter with $294 million in cash on our balance sheet which gave us the ability to pay down $102.5 million of our existing term loan on May 9, 2013. In addition, on May 13, 2013, we issued an irrevocable notice of redemption relating to $50 million of our currently outstanding 6.000% Senior Secured Notes due 2021 and €17.5 million of our currently outstanding 6.250% Senior Secured Notes due 2021."