Warner Music Group Corp. (NASDAQ:WMG) Q1 2023 Earnings Call Transcript

Eric Levin: Well, it is — if what you’re getting to Stephen is, is the slowdown in the ad markets affecting Sync growth trends. The answer is to a degree, yes, we have seen that there are definitely an impact in the commercial/advertising markets. That growth has slowed in that category, although our teams are still seeing a lot of opportunities and potential for growth in film, TV and other categories as well as global Sync, non- U.S. based Sync. So last year we saw Sync in both recorded and publishing growing in the kind of 20% range year-on-year. Those numbers were pretty extraordinary, partly based on our new technologies we’ve rolled-out, enhancing our teams and our productivity in those markets. But we do see certainly in this quarter a somewhat softer market for Sync.

We are managing that revenue line in both recorded and publishing for continued growth. But it is more challenging market, and our team certainly is targeting the areas that are more active and vital for critical Syncs and the commercial ad market is one they are seeing a degree of softness.

Stephen Laszczyk: Thank you very much.

Eric Levin: Thanks, Stephen. Greatly appreciate it.

Operator: Thank you. And I am showing no further questions from our phone lines. I would now like to turn the conference back over to Robert Kyncl for any closing remarks.

Robert Kyncl: All right. So thank you everyone for dialing in, asking questions and continuing to be interested in our business. I look forward to speaking with you frequently. And as I get up to speed, obviously continue to share more and more information in a very straight forward and transparent manner. So thank you very much. Have a great day.

Operator: Thank you. This concludes today’s conference call. Thank you for your participation, you may now disconnect. Everyone, have a wonderful day.