Sony Music Entertainment notched one of its most profitable years on record in 2022, as strong growth in streaming subscriptions and a favorable exchange rate propelled the company’s revenue from chart-topping artists like SZA, Harry Styles and Miley Cyrus.
SME’s reported revenue rose by nearly 24% to 1.38 trillion yen ($10.16 billion) and operating income rose nearly 25% to 263 billion yen ($1.94 billion) for the fiscal year 2022, making it the most profitable of the six companies under Sony’s umbrella.
“We have steadily improved our ability to continuously create hits,” Sony chief financial officer Hiroki Totoki said on a webcast, calling out Cyrus’ Flowers release in January. “In Recorded Music, an average of 43 songs ranked in the Spotify weekly global top 100 songs in FY22, increasing our market share significantly year-on-year.”
For the most recent quarter, Sony reported that overall revenues rose 19% to 341.89 million yen ($2.5 billion). Recorded music streaming revenue grew by 23% to 148.9 billion ($1.093 billion) from a year ago. Publishing income rose by 22% to 65.96 million yen ($485 million). SME’s revenues also benefitted from an exchange rate during that period that favored its Japanese parent company’s accounting in yen.
“In recorded music and music publishing, we aim to continue to grow faster than the market and maintain a higher growth rate and profit margin than our competitors by strengthening relationships with
influential artists, discovering and nurturing new talent, expanding our lineup through The Orchard and AWAL, and growing our business in emerging markets,” said Totoki, who also serves as Sony’s president and chief operating officer.
Executives said on Friday they expect revenues in Sony Music to grow by 2% overall to 1.41 trillion yen ($10.37 billion) for the fiscal year 2023.
