Warner Music Group reports 9% revenue growth as CFO Armin Zerza exits

The company estimated total revenue at approximately $1.86 billion for the three months ended 30 June 2026, while recorded music streaming revenue rose 10% at constant currency to just over $1 billion. Subscription streaming revenue increased 11%, while ad-supported streaming revenue grew 8%.

Zerza left WMG with immediate effect on 31 July, with the company citing personal reasons. His departure came two months after he took on the additional COO responsibilities alongside his CFO role.

WMG subsequently appointed Lou Dickler as acting CFO and promoted Tom Corson, previously co-chairman and COO of Warner Records, to COO of the wider organisation.

The company released the preliminary financial figures on 3 August, bringing forward the publication of its full second-quarter results to 5 August from the previously scheduled date of 6 August.

In its preliminary filing, WMG estimated that recorded music revenue increased 9% year on year at constant currency to approximately $1.49 billion, compared with $1.35 billion in the same period a year earlier. Music publishing revenue at Warner Chappell Music rose 11% to approximately $377 million from $336 million.

Consolidated digital revenue increased an estimated 9% at constant currency to approximately $1.25 billion, while digital music publishing revenue rose 15% to approximately $235 million.

The company also reported improved profitability. Net income attributable to WMG was approximately $204 million, compared with a $16 million loss in the prior-year period. Operating income increased 80% on a reported basis to approximately $305 million from $169 million, while adjusted OIBDA rose 15% at constant currency to approximately $433 million from $373 million.

WMG said the increase in adjusted OIBDA was "primarily attributable to strong operating performance in the quarter and savings from the Company's restructuring plans". The adjusted OIBDA margin increased to 23.2%, compared with 22.1% in the corresponding period last year.

The preliminary results come as streaming growth remains a key indicator of the performance of major recorded music companies. WMG's 11% increase in subscription streaming revenue at constant currency follows Universal Music Group's reported 6.7% growth in the same category during the second quarter, excluding the impact of its acquisition of Downtown Music Holdings.

WMG reiterated its financial targets, including high-single-digit consolidated revenue growth, double-digit growth in adjusted OIBDA and adjusted earnings per share, and operating cash flow conversion of between 50% and 60%.

The company also said it expects to deliver an adjusted OIBDA margin increase at the high end of its target range of 150 to 200 basis points for the 12 months ending 30 September 2026.

The latest figures follow WMG's first calendar quarter results, when the company reported total revenue growth of 12.1% at constant currency and a 12.7% increase in recorded music subscription streaming revenue.

All figures released in the preliminary filing are unaudited estimates and remain subject to change as WMG completes its financial closing procedures.