Buoyed by double-digit growth in recorded streaming and helped by major releases from Beyoncé and Future & Metro Boomin, Sony Music said on Tuesday that total revenue rose 23 percent to 442 billion yen ($2.7 billion) in during its first fiscal quarter, which ended in June. 30.
Sony's operating income improved 17% to 86 billion yen ($534 million) and adjusted operating income before depreciation and amortization (OIBDA) rose 30% to 108 billion yen ($671 million). Adjusted OIBDA margin improved to 24.4%.
Both of Sony's music divisions – recorded music and publishing – posted similarly steady year-over-year gains over the period.
Recorded music revenue rose 26% to 299 billion yen ($1.8 billion), with subscription and ad-supported streaming up 19% to 197 billion yen ($1.2 billion) and representing about 66% of this recorded segment. Physical revenue fell 5.6 percent to 24 billion yen ($150 million) year-on-year, while Sony's “other” category – cumulative merchandise, live performances and licensing revenue from sync, public performances and broadcasts – grew 81% to 73 billion yen ($453 million).
Some of Sony's top sellers for the fiscal quarter were Beyoncé's COWBOY CARTER and Future and Metro's WE DON'T TRUST YOU and their sequel WE STILL DON'T TRUST YOU. All three albums topped the Billboard 200 in late March and throughout April. Other big sellers during Q1 included Travis Scott's UTOPIA and SZA warning signas well as Luke Combs' I'm getting old21 Savage's American Dream and Doja Cat's Red.
Revenue from music publishing rose 28.7 percent to 97 billion yen ($602 million). Streaming revenue rose 36% to 56.5 billion yen ($351 million), while the “other” category of publications rose 19.7% to 40.1 billion yen ($249 million) compared with the year-ago period. The company revealed that as of March 31, its publishing division either owned or managed about 6.24 million songs, a 14% increase over the past two years.
Sony Music's visual media and platform revenue fell 7.1 percent to 39.7 billion yen ($246 million). The segment includes mobile games, software for PC and game consoles, and software development contracts.
Looking ahead, Sony Music Entertainment raised its full-year revenue forecast by 3% to 1.7 trillion yen (about $11.5 billion) with operating income projected to rise 5% from its previous forecast in May to 20 billion yen.
Sony Music Q1 financial results:
- Revenue of 442 billion yen ($2.7 billion), up 23% year over year.
- Adjusted operating income of 108 billion yen ($671 million), up 30%.
- Recorded music at 299 billion yen ($1.8 billion), up 26%.
- Music publishing revenue of 97 billion yen ($602 million), up 28.7%.
- Visual media and platform revenue of 39.7 billion yen ($246 million), down 7.1%.
