Warner Music Group reported "continued momentum" in music publishing but a "slowdown" in advertising.
The American entertainment and record label conglomerate posted 7% jump in revenue to US$1.43bn for the three months ended June 30, 2022, and reported EPS of US$0.24 for both the Class A and Class B shareholders.
Net income soared to US$125mln compared to US$61mln in the prior-year quarter.
Adjusted EBITDA decreased 6.7% from US$282mln to US$263mln with the quarter's results impacted due to the "slowdown in the advertising market and some one-time items affecting year-over-year comparisons," said Steve Cooper, chief executive.
"In June, we saw the beginning of a new wave of amazing releases and we’re looking forward to a strong end to our fiscal year. Long term, we have the scale to best capitalise on trends in artist development, and the agility and resources to continue to propel the globalisation and diversification of our business."
Foreign currency exchange rates "unfavourably impacted" growth in the quarter, the company said in a statement, but revenue growth was driven by continued recovery of Recorded Music artist services and expanded rights revenue.
The latter was negatively impacted by Covid in the prior-year quarter, but increased 42.9% this quarter, aided by continued growth of Music Publishing performance revenue.
Total streaming revenue increased 2.7% primarily driven by growth in Music Publishing streaming revenue of 29.6%, the company added.