Warner Chappell Music UK has revealed its financial results for 2019.
Warner Music Group has recently revealed the impact of Covid-19 including a decrease in performance revenue for Warner Chappell.
The latest figures for the UK business are for the 12 months to September 2019, so the impact of Covid-19 won’t be clear until the next set of financial results.
Warner Chappell UK reported that turnover was down 15% year-on-year to £94.06 million. Income from the UK was responsible for 68.1% of revenues, with the remainder from the rest of the world.
Operating profit was down 12% year-on-year to £9.5m.
According to the company report by Kate Alderton (pictured), VP, operations and finance, a one-off effect in the prior year impacted the 2019 revenues. If that is removed, turnover increased by 2% year-on-year in 2019.
“This is primarily driven by a growth in digital streaming income, partially offset by a decline in mechanical income due to the continuing market decline in physical CD sales,” said the report.
As well as closely tracking the impact of Covid-19, Warner Chappell is monitoring the effect of Brexit amid industry concerns.
“It seems unlikely, however, that British music will cease to be purchased, broadcast or performed in Europe, simply because of the Brexit decision,” said the report.
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