Welcome to Warner Music Group's Second Quarter Earnings Call for the Period Ended March 31, 2019. At the request of Warner Music Group, today's call is being recorded for replay purposes, and if you object, you may disconnect at any time. [Operator Instructions] Now I'd like to turn today's call over to your host, Mr. James Steven, Executive Vice President and Chief Communications Officer. You may begin.

Good morning, everyone. Welcome to Warner Music Group's fiscal second quarter ended March 31, 2019, conference call. Both our earnings press release and the Form 10-Q we filed this morning are available on our website. Today, our CFO, Steve Cooper, will update you on our business performance and strategy. Our Executive Vice President and CFO, Eric Levin, will discuss our financial condition and results. And then we will take your questions. Before Steve's comments, let me remind you that this communication includes forward-looking statements that reflect the current views of Warner Music Group about future events and financial performance. All forward-looking statements are made as of today, and we disclaim any duty to update such statements. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that can cause actual results that differ materially from our expectations. Information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in our earnings press release, our Form 10-Q and Form 10-K and other SEC filings. We plan to present certain non-GAAP results during this conference call. We have provided schedules reconciling these results to our GAAP results in our earnings press release posted on our website. Also, please note that all revenue figures and comparisons discussed today will be presented in constant currency unless otherwise noted. With that, let me turn it over to Steve Cooper.

Good morning, everyone, and thanks for joining us. I'm pleased to say our second quarter results reflected our continuing positive momentum. Specifically, we grew total revenue by 18%, digital revenue by 25% and OIBDA by 26%. Once again, we drew our strength from a diverse range of music. Among our Recorded Music bestsellers were K-Pop girl group, Twice; the global sensation of The Greatest Showman soundtrack; rock band, Panic! at the Disco; electronic pop band, Clean Bandit and hit pop stars, such as Meek Mill and Cardi B. On the publishing side of our business, Warner/Chappell songwriters are contributing to many of today's biggest global hits, including Swae Lee and Carter Lang for Post Malone Sunflower, Taylor Parks for Panic! At The Disco's High Hopes, Tay Keith for Travis Scott's Sicko Mode and Rico Love for City Girls Twerk to name just a few. We continue to attract a wide variety of new and established songwriting talent from Argentinian Trapstar, Echo to the Dutch rapper Boef and from legendary theatrical composer, Stephen Schwartz to country singer Ashley Malone. Our ability to nurture artists and songwriters at all stages of their careers was reflected in our strong showing during the awards season. At the Grammys, all of our labels shined with big wins for Elektra's Brandi Carlile, Warner Brothers, Dua Lipa, Atlantic's Cardi B and Warner Music Nashville's Dan + Shay. At the Brits, the 2 biggest British artists in the world right now, Warner Brother's Dua Lipa and Atlantic's Ed Sheeran were recognized for a phenomenal, phenomenal 2018. At Warner/Chappell, Kacey Musgraves picked up 4 Grammys, including Album of the Year and Ludwig Göransson collected best song and recorded year owners for co-writing Childish Gambinos, This Is America. Ludwig also took home the Oscar for Best Original Score for Black…

Thank you, Steve, and good morning, everyone. The second quarter was strong with reported revenue growth of 13% or 18% in constant currency. There are a few factors impacting the numbers that I'd like to call out on a constant currency basis. First, the net impact of M&A, which was about 3 percentage points. The revenue increase includes $51 million related to the acquisition of EMP, which was partially offset by a $24 million decrease related to concert promotion divestitures. Second, the impact of adopting the new revenue recognition standard, ASC 606, which increased revenue by $10 million or about 1 percentage point of revenue growth on a consolidated basis. As a reminder, the impact of 606 is expected to be immaterial for the full year. Third, we booked revenue of $18 million related to our license with Sirius XM for pre-1972 sound recordings, representing another 2 percentage points of growth. Adjusting for these items, our total Q2 revenue would still have been strong, up close to the 12% in constant currency. From an OIBDA perspective, certain adjustments are also necessary to make the year-over-year comparisons more meaningful. The details are in our press release. But in the quarter, we had $8 million of onetime expenses related to restructuring and our LA office consolidation down from $29 million in the prior year quarter related to restructuring, the LA office and our national shared service center. Q2 adjusted OIBDA rose 10% to $199 million. The improvement was driven by revenue growth, $11 million lower expense related to our variable compensation plan and a $9 million increase related to Sirius XM pre-72 license, offset by a $4 million decrease related to the implementation of ASC 606. Adjusted OIBDA margin declined 0.5 percentage points to 18.3%, due primarily to the impact of ASC…

[Operator Instructions]

Operator, I guess we have no questions. So thanks, everybody, for joining us. I hope you have a wonderful spring and summer, and we'll talk to you soon. Thanks so much.

And this concludes today's conference call. You may now disconnect.