WMG posts $1.48b quarterly revenue on streaming, publishing gains

The company attributed the revenue growth to increased licensing and physical sales, along with notable improvements in digital, performance, synchronisation, and mechanical revenues within its music publishing division. These gains were partly offset by a decline in artist services and expanded-rights revenue in the recorded music segment.

WMG’s latest financial disclosure coincides with strong chart performance, as five of the top ten positions on the Billboard Global Chart are currently held by Warner artists, including the top three spots. Rising US singer and YouTuber Alex Warren leads with his single ‘Ordinary’ at No. 1.

WMG CEO Robert Kyncl addressed investors on 8 May, noting that the company’s strategy is beginning to yield results, particularly in the US. “Our strongest chart presence in two years is translating to expanding new release market share in the US,” he said. Kyncl added that although last year’s standout performance made for a tough comparison, WMG remains committed to replicating its strategy across different labels and markets to ensure long-term growth and profitability.

In recorded music, revenues totalled $1.175 billion, reflecting a 0.7% increase at constant currency. Streaming revenue, which includes both subscription and ad-supported services, rose 1.6% year-on-year to $825 million. Within this, subscription streaming revenues climbed 3.2% to $622 million, while ad-supported streaming declined by 2.9% to $203 million, which WMG attributed to broader softness in the advertising sector.

Licensing revenue in recorded music rose by 2.9% to $105 million, primarily driven by deals in Japan and the US. However, artist services and expanded-rights revenue dropped by 5.6% to $117 million due to weaker concert promotion income in France, reduced merchandising sales at EMP, and the winding down of WMG’s owned media properties.

Physical music sales increased 1.8% to $112 million, supported by new releases from artists such as US rapper Mac Miller (Balloonerism), Japanese rock band ONE OK ROCK, and South Korean girl group TWICE. This was partially offset by the termination of a distribution agreement with BMG.

Warner Chappell Music, the company’s publishing division, posted revenue of $310 million, up 3% year-on-year at constant currency. Growth was recorded across all major categories, including a 1.6% rise in streaming income to $185 million, driven by renewed digital deals in the United States. Performance revenue increased by 6% to $53 million due to stronger returns from concerts, radio, and live events outside the US. Synchronisation income rose by 2.1% to $49 million, supported by increased television and advertising placements. Mechanical revenue showed the largest gain, rising 14.3% to $16 million on the back of stronger physical sales.

Despite overall revenue growth, WMG’s profitability presented a mixed picture. Net income fell to $36 million, down from $96 million in the same quarter last year. However, operating income rose to $168 million from $119 million, representing a 47.4% year-on-year increase at constant currency. Adjusted OIBDA (Operating Income Before Depreciation and Amortisation) declined slightly to $303 million from $312 million, down 1% year-on-year at constant currency.