Sony Music Posts Record Profits, Fueled By Double-Digit Streaming and Publishing Growth
Revenue from Sony's music segment rose 14% to 1.8 trillion yen ($12 billion) from higher subscription streaming revenues and gains from live, merchandise and sync businesses.
Sony Music reported record high operating profit and a 14% jump in revenue for its fiscal year, as revenue from subscription streaming and its live, merchandise and sync business bolstered earnings, parent company Sony Group Corp. reported Wednesday (May. 14).
Sony’s music segment, which includes Sony Music Entertainment, Sony Music Entertainment Japan and Sony Music Publishing, generated 1.8 trillion yen ($12 billion) in revenue, with strong streaming revenue growth and sales for music from artists like SZA, Travis Scott and Tate McRae. Total operating profit, or the money the company earned from core businesses, was up 18% to 357 billion yen ($2.4 billion) on increased sales. Adjusted operating income before depreciation and amortization (OIBDA) rose 20.5% to 449 billion yen ($3 billion).
Total recorded music revenue rose 12% to 1.2 trillion yen ($8 billion), with recorded music streaming revenue up 11% to 789 billion yen ($5.23 billion). Other recorded music revenue, which includes live, merch and sync revenue, rose 23% to 273 billion yen ($1.82 billion), and 4.8% to 106 billion yen ($707 million).
Publishing revenue rose 18% to 366 billion yen ($2.4 billion), thanks largely to a 13% increase (on a U.S. dollar basis) in revenue received from streaming.
Combined recorded music and publishing revenue climbed 13% to 1.6 trillion yen ($10.7 billion), while streaming revenue from both segments grew 9% to 248.5 billion yen ($1.67 billion).
The company expects flat overall operating profit for the three businesses that make up Sony’s music segment for coming fiscal year largely due to the impact of foreign exchange rates and the impact of increased marketing costs for recorded music and the visual media and platform business at Sony Music Japan. The company says investors can expect high single digit profit growth in U.S. dollars at Sony Music Entertainment.
Other top selling artists in the quarter included Central Cee, BLACKPINK members LISA and JENNIE, Rauw Alejandro and Tyler, the Creator.
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