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Bulletin YOUR DAILY ENTERTAINMENT NEWS UPDATE MAY 4, 2021 Page 1 of 26 INSIDE Warner Music Group • Pop on Top, R&B Rising: The State Boosts Profit Margins on of the Hot 100’s Top 10 in Q1 2021 $1.25B Quarterly Revenue • Red Hot Chili Peppers Selling BY ED CHRISTMAN Song Catalog • The Revolution Will arner Music Group rebounded nicely “Following a strong first quarter, I’m happy to Be Digitized: How from last year’s pandemic-riddled report that our momentum continued in Q2, and our RAC Is Using NFTs to second fiscal quarter, posting $117 business is stronger than ever,” WMG CEO Steve Coo- Empower Artists million in net income, or 23 cents per said in a statement. “Despite the ongoing pandem- • Here’s How perW diluted share, on revenues of $1.25 billion for the ic, we generated double-digit revenue growth in both Music Companies quarter ended March 31, 2021. That’s versus a $48 Recorded Music and Music Publishing. Our success Are Honoring million net income loss on revenue of $1.09 billion for was driven by chart-topping new releases from our Asian American the quarter ended March 31, 2020. incredible artists and songwriters, as well as bold and and Pacific Islander Heritage Month Most importantly, all of the company’s profit met- imaginative execution from our world-class opera- rics showed improvement with OIBDA (operating tors. We’re excited about the rest of year, as we have a • UTA Promotes income before depreciation and amortization) coming fantastic slate of new music coming from established over 100 Across in at $228 million versus $12 million in the year earlier superstars and emerging talent.” 30 Divisions period; while after those expenses, operating income The company credited releases from Megan Thee • All Your Questions came in at $151 million, versus a $43 million loss last Stallion, as well as carryover success from Dua Lipa, About the End of the time out. That means the company’s operating margin Michael Bublé, Ed Sheeran, Ava Max, the Hamilton cast Grammy Nomination — in the red in the year earlier period — is now begin- recording and Roddy Ricch, for all boosting revenues. Review Committees, Answered: Analysis ning to climb and stands at 12.1% of revenue. Breaking out revenue by operations, the company’s The increased profitability was spurred by gal- record labels produced $1.06 billion in revenue — a • Michael Jackson’s loping streaming revenue growth, tighter overhead 16.8% increase from the $907 million turned in last Likeness Valued at cost containment and lower non-cash stock-based year. From those totals, the company produced $235 $4.1 Million in Big Tax Court Win for Estate compensation related to the company’s management million in OIBDA in the second quarter, versus $76 incentive plans. (continued) 250 SPEAKERS FREE FESTIVAL REGISTER TODAY TIMBALAND MERCK MERCURIADIS NILE RODGERS CHRIS BLACKWELL BUFFY SAINTE-MARIE DEBRA RATHWELL Award-Winning Record GRAMMY®-Winning Founder, Singer, Songwriter CEO/Founder ® EVP, Global Touring & Producer, Rapper, DJ, Composer, Producer, Island Records Oscar -Winning Composer Singer, and Songwriter Hipgnosis Songs Ltd. Arranger and Guitarist Talent, AEG Presents 2021 NOEL SCHAJRIS 20TH ANNIVERSARY TRIBUTE Latin Grammy winner, singer, songwriter and pianist Noel CONTACTS Schajris, has sold more than 25 million records and 1 million tickets since his first solo album 20 years ago, some Joe Maimone of his songs and albums had been appeared at the 201.301.5933 | [email protected] Billboard’s top ten charts. He has earned international Lee Ann Photoglo success with the legendary duet Sin Bandera where he 615.376.7931 | [email protected] and Leonel Garcia created some of the biggest hits in Spanish music history. Cynthia Mellow 615.352,0265 | [email protected] His music videos have more than 700 million views and his social media includes 9.5 million followers from more than Marcia Olival 15 countries. As a recording artist, he has sung duets with 786.586.4901 | [email protected] John Legend, Brian Mcknight, Luis Fonsi, and Reik, just to Ryan O’Donnell name a few. +447843437176 | [email protected] In 2020 he released the unique web www.NoelSchajris.fan which includes an online store, a fan subscription service and online shows . Mr. Schajris is considered to be one of the most important and celebrated artists in Latin music. ISSUE DATE 5/15 | AD CLOSE 5/5 | MATERIALS DUE 5/6 Page 3 of 26 IN BRIEF million in the year-earlier corresponding fiscal quarter, Warner Chappell Music grew million from $116 million in the first half of period. That amounts to a nearly three-fold a whopping 15.7% to $192 million from 2020, and when non-cash charges are added increase year-over-year. After the non-cash $166 million the same quarter last year, back in OIBDA totaled $495 million, or expense subtractions, the recorded music with streaming driving practically all of nearly double the prior year’s $248 million. division brought in $184 million in operating that increase. Within that, recorded music grew 11% to income, good enough to produce a respect- Breaking down publishing revenue for $2.22 billion from $1.99 billion in the year- able and growing 17.4% operating margin. Q1 2021: earlier corresponding six month period and Breaking down recorded music revenue Digital generated $104 million, up 15.7% publishing was up 8.3% to $367 million from for Q1 2021: from $75 million from the same period last $339 million. Streaming produced $722 million in rev- year. Looking at recorded music, digital drove enue, a 23.2% increase from the same period Performance revenue, as expected, the segment’s revenue growth as it in- last year when it was $586 million. dropped 14.6% to $35 million from $41 mil- creased a healthy 17.8% to $1.483 billion bil- Downloads dropped 15% to $34 million lion in the same period last year. lion from $1.26 billion in the year-earlier, from the same period last year when it was Synchronization increased by 11.8% to $38 six-month period. $40 million. million from $34 million in the same period Breaking down recorded music revenue Physical grew 25.5% to $118 million from last year. for H1 2021: the same period last year when it was $94 Mechanical fell 20% to $12 million from Streaming grew 20.3% to $1.414 billion million, thanks to catalog vinyl releases from $15 million in the same period last year. from the first fiscal half of 2020 when it was Fleetwood Mac and Neil Young and a Yellow As a percentage of revenue, that breaks $1.175 billion, and now comprises 63.7% of Monkey release in the Japan market. out to: 54.2% digital, 19.8% synch, 18.2% recorded music revenue (compared to 59% Artist services and expanded rights man- performance, 6.3% mechanical and 1.6% in the first half of 2020). aged to hold its, own coming in at $118 mil- other. (The year prior that was 44.6% digi- Downloads dropped 17.9% to $69 mil- lion, up slightly from same period last year tal, 24.7% performance, 20.5% synch; 9% lion from the first fiscal half of 2020 when when it was $115 million mechanical and 1.2% other.) it was $84 million, and now comprises 3.1% Licensing and other revenue fell nearly For the six month period ended March of revenue (compared to 4.2% in the first 7% to $67 million, down from $72 million in 31, 2021, the company enjoyed robust half of 2020). the same period last year. net income growth to $216 million, or 41 Physical grew 5% to $292 million As a percentage of recorded music cents per diluted share, a whopping 350% from the first fiscal half of 2020 when it revenue, that breaks out to: 71.4% digital increase over the $48 million, or nine cents was $278 million, and now comprises 13.2% (68.2% streaming and 3.2% downloads), per diluted share, in the six months ended of revenue (compared to 14% in the first 11.1% physical; 11.1% artist services with March 31, 2020, while revenue grew 11.1% half of 2020) expanded rights; 6.3% licensing and other to $2.56 billion from $2.33 billion in the first Artist services and expanded rights income streams. half of 2020. dropped 1.7% to $298 million from the first Looking at publishing, during the second Operating income nearly tripled to $347 fiscal half of 2020 when it was $303 million, AUTHORITATIVE INTELLIGENCE. DELIVERED DIGITALLY. CLICK HERE FOR FREE DELIVERY DIGITAL NEWSLETTERS 2021 PRIDE On June 5th, Billboard will publish its 3rd annual CONTACTS Pride issue honoring culturally moving and Joe Maimone influential people who have contributed to the 201.301.5933 | [email protected] community’s history and its current landscape. Lee Ann Photoglo Year-round Billboard and Rolling Stone celebrate 615.376.7931 | [email protected] the LGBTQIA+ community through the lens of music, amplifying the culture of the proud Cynthia Mellow LGBTQIA+ community across our editorial 615.352,0265 | [email protected] channels, including Billboard Pride. Marcia Olival 786.586.4901 | [email protected] Building on this platform, Billboard and Rolling Stone will be joining together for the entire month Ryan O’Donnell +447843437176 | [email protected] of June to celebrate love, acceptance, diversity and what it means to be queer in music. All month long, Billboard and Rolling Stone will be the go-to destination for music and entertainment Pride content. Leveraging our iconic voices within music and culture, Billboard and Rolling Stone will curate a mix of engaging video and social content featuring thought-provoking panels, heartfelt performances, and glam tutorials – all fostering a community of consumers and influencers in celebration of LGBTQIA+.
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