WMG's top physical sellers in the quarter included Mac Miller’s Balloonerism and new releases from ONE OK ROCK and TWICE [pictured].
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Warner Music Grouphas issued its financial results for the three months ended March 31, 2025 (calendar Q1 – the company’s fiscal Q2).
According to the company’s fiscal Q2 (calendar Q1) results, WMG saw its quarterly global company-wide revenues reach USD $1.484 billion (across recorded music, music publishing, and other activities).
Total revenue was up 1.2%YoY at constant currency. The company pinned its revenue performance on “lower Recorded Music artist services and expanded-rights revenue,” which it said was “partially offset by higher licensing and physical revenue and growth across Music Publishing digital, performance, synchronization and mechanical revenue”.
Warner’s calendar Q1 results arrive alongside the news that half the Top 10 of the Billboard Global Chart is currently occupied by WMG artists, including the Top 3, with rising star Alex Warren’s hit Ordinary at No.1.
“Our strategy is starting to bear fruit, with our strongest chart presence in two years, translating to expanding new release market share in the US.”
“Our strategy is starting to bear fruit, with our strongest chart presence in two years, translating to expanding new release market share in the US,” said Warner Music Group CEO Robert Kyncl in a note to investors on Thursday (May 8).
He added: “As a result, our true strength this quarter was partially obscured by challenging comparisons with last year’s outperformance.
“As we replicate our strategy across other labels and geographies, and drive a virtuous cycle of greater reinvestment, we expect to deliver lasting value for artists and songwriters, and sustained growth and profitability for shareholders.”
RECORDED MUSIC
Warner Music Group’s recorded music revenues were up 0.7% YoY at constant currency to $1.175 billion.
According to WMG, this performance was “driven by decreases across digital and artist services and expanded-rights revenue” and was “partially offset by growth in physical and licensing revenue”.
Warner’s recorded music streaming revenue (including ad-supported and subscription) was up 1.6%YoY on a constant currency basis to $825 million (see below).
The company said in its filing on Thursday that “streaming revenue was impacted by a challenging year-over-year comparison, largely in subscription streaming revenue, compounded by a lighter release slate and market share loss in China”.
WMG also breaks that streaming figure down in its balance sheet to highlight the performance of its subscription streaming and ad–supported streaming revenues, respectively.
The company’s revenues from recorded music subscription streaming reached $622 million in calendar Q1, up 3.2% YoY at constant currency.
WMG generated $203 million in ad-supported recorded music streaming revenues in calendar Q1, which was down 2.9% YoYat constant currency.
WMG said that “the decrease in ad-supported revenue was driven by a soft overall ad environment”.
Elsewhere in Recorded Music, WMG’s Licensing revenue increased 2.9% YoY at constant currency to reach $105 million, driven, according to WMG, “by licensing deals primarily in Japan and the US, partially offset by the timing of copyright infringement settlements”.
Artist services and expanded-rights revenue reached $117 million, down 5.6% YoY at constant currency due, according to WMG, “to lower concert promotion revenue primarily in France, lower direct-to-consumer merchandising revenue at EMP, and a decrease in revenue related to winding down the Company’s owned and operated media properties in the prior-year quarter”.
Physical revenue increased 1.8% YoY at constant currency to reach $112 million, driven, WMG said, “by new releases in the quarter, primarily in the US and Japan, partially offset by the impact of the BMG Termination“.
WMG’s top physical sellers in the quarter included Mac Miller’s Balloonerism and new releases from ONEOKROCK and TWICE.
Music Publishing
Warner’s global music publishing division – Warner Chappell Music – saw its quarterly revenues increase by 3% YoY at constant currency to $310 million.
WMG reported that the increase was driven by growth across digital, performance, synchronization and mechanical revenue.
Music publishing streaming revenue increased 1.6% YoYat constant currency to $185 million, driven, WMG said, “by the impact of digital deal renewals primarily in the US”.
Performance revenue increased 6% YoY at constant currency to $53 million, attributable, per WMG’s earnings report, “to growth from concerts, radio and live events primarily outside of the US”.
Synchronization revenue increased 2.1% YoYat constant currency to $49 million, due to “higher television and commercial licensing activity and the impact of acquisitions, partially offset by the timing of copyright infringement settlements,” WMG said on Thursday.
Mechanical revenue increased14.3% YoY at constant currency to $16 million, driven by “higher physical sales” in the quarter.
WARNER’S CALENDAR Q1 2025 IN SUMMARY (% IN CONSTANT CURRENCY):
Warner Music Group’s overall revenues were up 1.2% YoY at constant currency to $1.484 billion in calendar Q1;
Recorded music revenues were up 0.7% YoYon a constant currency basis to $1.175 billion;
Within that figure, recorded music streaming revenues were up 1.6% YoY at constant currency to $825 million;
Recorded music subscriptionstreaming revenues were up 3.2%YoY on a constant currency basis to $622 million.
Music publishing revenues – at Warner Chappell Music – were up 3% YoY at constant currency to $310 million.
WMG: PROFITABILITY IN CALENDAR Q1 2025
WMG’s net income stood at $36 million versus $96 million in the prior-year quarter.
Operating income stood at $168 million versus $119 million in the prior-year quarter (up 47.4% YoY at constant currency)
The firm’s quarterly adjusted OIBDA was $303 million versus $312 million in the prior-year quarter, down 1% YoY at constant currency.
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