Warner Music Group (WMG) said on Thursday (Aug. 7) that the company’s revenue grew to $1.7 billion in the quarter, thanks to a double-digit increase in publishing revenue and strong subscription streaming returns.

On a conference call with analysts and investors, WMG CEO Robert Kyncl said, “We’ve delivered a strong quarter marked by a reacceleration of growth. We’re … putting more money behind the music, while simultaneously becoming leaner and stronger.”

This was the first quarterly earnings call with WMG’s new CFO, Armin Zerza, since he was brought on in May, and it came with the news that WMG named Lo Ting-Fai, known as Lofai, as president of Warner Music APAC. Lofai previously worked at telecoms giant PCCW, where he focused on artist management and live events, among other things.

Cost Cuts Pay Off

Kyncl’s strategy for more than a year has prioritized gaining market share, reducing Warner’s operating expenses and pushing streaming companies to raise prices. On Thursday, Kyncle described the plan to analysts and investors as “putting more money behind the music while simultaneously becoming leaner and stronger.”

Kyncl pointed to a percentage point market share gain for WMG in the U.S. market, according to Luminate data, as proof that the market share prong of the company’s strategy is working. He also highlighted the $300 million cost-cutting strategy the company announced in July. WMG ultimately expects the cost cuts to add up to 200 basis points to its profit margin, free up cash to invest in A&R and catalog acquisitions, and improve cash conversion rates, which are key for shareholders.

“I want to say that we’re really happy with the progress that we’re making, not only succeeding in the charts, but starting to see that translating into market share, and especially in the United States,” Kyncl said. “In order to sustain the growth in the future, we need to do better with more.”

Stepping Up Investment Mergers and Acquisitions

In June, Warner confirmed it had established a joint venture with Bain Capital worth $1.2 billion to ramp up its catalog acquisitions using third-party capital. Warner will own 50% of the catalogs acquired through the deal, and will earn revenue from managing, marketing and administering the assets.

WMG CFO Zerza, who is now overseeing finance and business strategy, called the joint venture a “key building block” for the company, and said his team has identified key markets and genres “where we will meaningfully invest.”

“The joint venture … [adds] even more firepower to our M&A initiatives, while also providing us with additional rights revenue and market share,” Zerza said. “We are focused on growth, margin and cash, and the acquiring catalog does really all of that. So the JV is really a critical building block for us in our long-term strategy.”

Zerza added, “Expect news of our first acquisition soon.”