December 31, 2021.
Adjusting for the impact of the one-time settlement for the three months ended December 31, 2020, total digital revenue increased
by $2,877 thousand or 28%.
Music
Publishing revenues increased by $657 thousand, or 4%, to $18,403 thousand for the three months ended December 31, 2021 from $17,746 thousand
for the three months ended December 31, 2020. U.S. Music Publishing revenues were $9,013 thousand, or 49% of consolidated Music Publishing
revenues for the three months ended December 31, 2021, and $7,360 thousand, or 41% of consolidated Music Publishing revenues for the three
months ended December 31, 2020. International Music Publishing revenues were $9,389 thousand, or 51% of consolidated Music Publishing
revenues for the three months ended December 31, 2021, and $10,386 thousand, or 59% of consolidated Music Publishing revenues for the
three months ended December 31, 2020.
The
overall increase in Music Publishing revenue during the three months ended December 31, 2021 was mainly driven by acquisitions of catalogs
and revenue from the existing catalog, which led to an increase in synchronization revenue of $1,077 thousand, or 79%, other revenue of
$2,282 thousand, or 502%, mechanical revenue of $234 thousand, or 46%, and performance revenue of $238 thousand, or 6%. These increases
were partially offset by a decrease in digital revenue of $3,174 thousand, or 27%, which is primarily attributed to the one-time settlement
during the three months ended December 31, 2020, as described above. The increase in other revenue is primarily the due to the launch
of a rights management subsidiary in the Middle East.
Recorded
Music revenues increased by $4,834 thousand, or 147%, to $8,110 thousand for the three months ended December 31, 2021 from $3,277 thousand
for the three months ended December 31, 2020. U.S. Recorded Music revenues were $4,011 thousand and $583 thousand, or 49% and 18% of consolidated
Recorded Music revenues for the three months ended December 31, 2021 and December 31, 2020, respectively. International Recorded Music
revenues were $4,100 thousand and $2,693 thousand, or 51% and 82% of consolidated Recorded Music revenues for the three months ended December
31, 2021 and December 31, 2020, respectively.
The
overall increase in Recorded Music revenue during the three months ended December 31, 2021, was driven in part by the acquisition of Tommy
Boy in June 2021, which contributed $3,829 thousand to Recorded Music revenue during the three months ended December 31, 2021. Digital
revenue increased by $3,351 thousand primarily due to the acquisition of Tommy Boy and due to the continued growth at music streaming
services. Physical revenue increased by $110 thousand primarily due to the acquisition of Tommy Boy. Synchronization revenue increased
by $1,100 thousand primarily due to the acquisition of Tommy boy and the recovery in the film and television industry from the impacts
of the COVID-19 pandemic. Neighboring rights revenue increased by $273 thousand primarily due to the acquisition of Tommy Boy.
Nine
Months Ended December 31, 2021 vs. Nine Months Ended December 31, 2020
Total
revenues increased by $18,097 thousand, or 32%, to $74,281 thousand for the nine months ended December 31, 2021 from $56,184 thousand
for the nine months ended December 31, 2020. Music Publishing revenues represented 71% and 83% of total revenues for the nine months ended
December 31, 2021 and December 31, 2020, respectively. Recorded Music revenues represented 27% and 15% of total revenues for the nine
months ended December 31, 2021 and December 31, 2020, respectively. U.S. and international revenues represented 52% and 48%, respectively,
of total revenues for the nine months ended December 31, 2021, and 49% and 51%, respectively, of total revenues for the nine months ended
December 31, 2020.
Total digital revenues increased by $8,555 thousand, or 28%, to $39,175 thousand for the nine months ended December 31, 2021 from
$30,621 thousand for the nine months ended December 31, 2020. Total digital revenues represented 53% and 55% of consolidated revenues
for the nine months ended December 31, 2021 and December 31, 2020, respectively. The decrease in digital revenue as a percentage of consolidated
revenue is due to the continued recovery of synchronization revenue which contributed a higher portion of revenue during the nine months
ended December 31, 2021 as compared to the nine months ended December 31, 2020.
Music Publishing revenues increased by $6,146 thousand, or 13%, to $52,817 thousand for the nine months ended December 31, 2021
from $46,671 thousand for the nine months ended December 31, 2020. U.S. Music Publishing revenues were $26,683 thousand, or 51% of consolidated
Music Publishing revenues for the nine months ended December 31, 2021, and $24,313 thousand, or 52% of consolidated Music Publishing revenues
for the nine months ended December 31, 2020. International Music Publishing revenues were $26,133 thousand, or 49% of consolidated Music
Publishing revenues for the nine months ended December 31, 2021, and $22,358 thousand, or 48% of consolidated Music Publishing revenues
for the nine months ended December 31, 2020.