Sony Music revenue grew 10% year-on-year to 448.2 billion yen ($2.9 billion) last quarter, as hit records by SZA, David Gilmour and Travis Scott, coupled with higher sales from live shows and merchandise, helped boost growth in both recorded music and music publishing.
For its fiscal second quarter ended Sept. 30, Sony Music — comprising Sony Music Entertainment, Sony Music Entertainment Japan and Sony Music Publishing — reported quarterly operating income of 90 billion yen ($589 million), a 12% rise on the same period a year ago.
Adjusted operating income before depreciation and amortization (OIBDA) climbed 15% year-on-year, totaling just under 112 billion yen ($733 million), Sony Music’s parent company, Sony Group Corp., reported Friday (Nov. 8).
The company said growth in revenue from streaming subscriptions, live events and merchandise from recorded music, as well as the impact of foreign exchange rates were among the key drivers of its positive quarterly financial results. They bring Sony Music’s half-year earnings up to 890.2 billion yen ($5.8 billion), up 16% year-on-year, with a half-year operating income of 176 billion yen ($1.1 billion).
Breaking down Sony Music’s quarterly earnings, recorded music revenue increased 14% year-on-year to 290 billion yen ($1.9 billion), with subscription and ad-supported streaming up 9% to 189 billion yen ($1.2 billion), accounting for around 65% of the firm’s recorded music earnings.
Physical revenue jumped 22% year-on-year to 25 billion yen ($164 million), while Sony’s “other” category — which includes revenue from merchandise, live performances and licensing revenue from synch, public performance and broadcast — was up 33% to 68 billion yen ($446 million).
SZA’s blockbuster album SOS, which has broken numerous chart records since it was first released in December 2022, including overtaking Aretha Franklin’s Aretha Now as the longest-running chart topper of the Top R&B/Hip-Hop Albums tally, was Sony Music’s top seller of the quarter.
In second place was Gilmour’s first studio album in nine years, Luck and Strange, which debuted at No. 10 on the Billboard 200 earlier this year. Other top sellers for Sony Music in the three month period included Scott’s UTOPIA, Future & Metro Boomin’s WE DON’T TRUST YOU, Beyoncé’s COWBOY CARTER, Harry Styles’ Harry’s House and Luke Combs’ This One’s for You. The one title in the top 10 from outside this decade was Michael Jackson’s Thriller, the 1982 classic co-produced by Quincy Jones, who passed away on Sunday (Nov. 3).
On the music publishing side, Sony Music reported revenue of 92 billion yen ($604 million), up 11% year-on-year. The company said the strong performance of its publishing arm was led by strong gains in streaming income, which rose 9% to just under 53 billion yen ($347 million). Publishing’s “other” category grew by around 13% year-on-year to 38.6 billion yen ($253 million). The company disclosed that as of March 31, its publishing division either owned or administered approximately 6.24 million songs.
Visual media and platform sales, which includes revenue from animation titles, game applications and service offerings for music and visual products, fell slightly to 62 billion yen ($407 million), down 1% on the same period last year.
Sony Music said its forecast for full-year revenue was unchanged from the previous quarter with projected sales of 1.74 trillion yen (approximately $11.4 billion) and projected operating income of 330 billion yen ($2.2 billion).
Sony Music’s fiscal second quarter highlights:
▪Revenue of 448 billion yen ($2.9 billion), up 10% year-on-year
▪Adjusted operating income of 112 billion yen ($733 million), up 15%
▪Recorded music revenue increased 14% year-on-year to 290 billion yen ($1.9 billion)
▪Music publishing revenue of 92 billion yen ($604 million), up 11%
▪Visual media and platform revenue of 62 billion yen ($407 million), down 1%