Warner Music Group has reported complete income of $1.689 billion in calendar Q2 (fiscal Q3), representing a 7% YoY enhance in fixed forex.
But the corporate’s underlying recorded music efficiency was considerably stronger than headline figures recommend – as soon as a number of one-time gadgets are excluded.
Warner’s quarterly recorded music income of $1.354 billion was formally up 6.4% YoY in fixed forex. However excluding one-time gadgets, the underlying development was really up 8.3% YoY in fixed forex.
Maybe most vital for watching analysts: When the one-times are omitted, Warner Music Group’s underlying subscription streaming recorded music income was up 8.5% YoY in fixed forex.
This determine represents a reacceleration of development in maybe WMG’s most crucial metric for traders. (Within the agency’s final quarter, calendar Q1, WMG’s recorded music subscription income was up by 3.2% YoY – whereas general recorded music revenues had been up simply 0.7% YoY.)
Robert Kyncl, CEO, Warner Music Group, stated immediately (August 7): “This quarter we delivered large chart hits, breakthrough stars, robust income development, and market share good points… all of which present our technique is working.
“As we proceed to evolve our firm, we’re specializing in the artists, songwriters, and markets with the best potential, whereas increasing our iconic catalog, and constructing the dynamic groups and instruments that can assist our expertise have the most important international affect.”
WMG’s calendar Q2 2025 one-time changes cowl two particular gadgets:
- (i) The prior-year quarter (calendar Q2 2024) was boosted by +$22 million in catch-up funds from a digital service supplier for earlier durations; and
- (ii) Each quarters (calendar Q2 2024 and Q2 2025) had been impacted by Warner’s terminated distribution settlement with BMG, which decreased present quarter income by $14 million in comparison with the prior 12 months.
As well as, WMG’s recorded music outcome was impacted by +$16 million copyright settlement income in calendar Q2, which can also be omitted to succeed in the underlying RM income development determine.
Armin Zerza, CFO, Warner Music Group, stated: “Our robust efficiency this quarter displays our dedication to investing in nice music, driving higher effectivity, and creating long-term worth for our artists, songwriters, and shareholders.”
WMG’s calendar Q2: breaking down these $1.354B Recorded Music income
Inside WMG’s $1.354 billion in recorded music income in calendar Q2, the agency’s streaming income (throughout ad-supported and subscription) totaled $895 million.
That was formally up 2.6% YoY in fixed forex. Nevertheless, excluding the one-time gadgets, underlying streaming income development was 5.8% in fixed forex.
Subscription recorded music streaming income reached $674 million, representing 4.2% YoY development in fixed forex. But on an underlying foundation, as defined, this metric was up 8.5% YoY.
Advert-supported recorded music streaming income declined 1.8% YoY in fixed forex to $221 million.
Warner’s largest revenue-generating artists quarter included BAEKHYUN, ROSÉ, Bruno Mars, Grateful Useless and Teddy Swims.
Though WMG cited “robust market share good points within the US” to traders immediately, there was a very attention-grabbing geographic stat buried in its recorded music outcomes: ex-US recorded music income grew considerably quicker than income inside the US.
US-based recorded music income hit $536 million, up 4% YoY in fixed forex (USD vs. USD); worldwide recorded music income totaled $818 million, up 8% YoY in fixed forex.
Elsewhere in WMG’s international recorded music outcomes, bodily income decreased 4.0% YoY in fixed forex to $119 million, with the BMG termination accounting for $10 million of the decline.
Artist companies and expanded-rights income elevated 19.6% YoY in fixed forex to $195 million, pushed by greater live performance promotion income primarily in France and Spain.
Licensing income elevated 19.4% YoY in fixed forex to $111 million, pushed by licensing offers primarily within the U.Ok. and China, and timing of copyright infringement settlements.
WMG’s calendar Q2: Publishing generates $336 million
Warner’s music publishing division, led by Man Moot and Carianne Marshall, posted $336 million in income, a rise of 9.4% YoY in fixed forex.
Music publishing streaming income totaled $202 million, up 4.1% YoY in fixed forex from $192 million in Q2 2024.
Whole music publishing digital income reached $204 million, a rise of 4.6% YoY in fixed forex.
WMG’s calendar Q2: Earnings and so forth.
Warner’s adjusted OIBDA elevated 15.8% YoY in fixed forex to USD $373 million, with Adjusted OIBDA margin rising to 22.1% from 20.4% in fixed forex.
Money supplied by working actions decreased to $46 million in comparison with $188 million within the prior-year quarter, largely as a result of greater A&R spend and different actions in working capital.
The corporate reported a money stability of $527 million as of June 30, 2025, with complete debt of $4.363 billion and internet debt of $3.836 billion.
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