Warner Music Group reported on Thursday that total revenue for its fiscal year rose 6% from a year ago on strong digital and streaming subscription revenue.
The company reported total revenue of $6.43 billion for the twelve months ended Sept. 30, up 6% from the roughly $6 billion the company generated 12 months earlier. That figure included $5.22 billion in recorded music revenue, up 5% from a year ago, and $1.2 billion in music publishing revenue, up 11% year-over-year before.
WMG's digital revenue was up 7.3% and streaming revenue was up 8.2% year over year, despite a distribution deal with BMG that negatively impacted both digital and streaming revenue via recorded music. Streaming revenue from music publishing rose 14.6%, as both divisions benefited from licensing, physical sales, performance and sync revenue, the company said.
“Our strong flow performance, supported by positive industry trends and combined with our cost discipline, has led to strong cash flow generation.” Brian CastellaniCFO of Warner Music Group, said in a statement. We're excited about the opportunities ahead and look forward to delivering more culture-shaping music in 2025 and beyond.”
Big sellers during the label's fourth quarter included Benson Boone, Charli XCX, Zach Bryan and Teddy Swims.
Warner stock was up 2.25% in premarket trading at 8:04 a.m. in New York.
WMG financial highlights for the full financial year:
- Total revenue rose 6% to $6.426 billion for the fiscal year, from $6.037 billion in 2023.
- Recorded revenue rose 5% to $5.223 billion from $4.995 billion.
- Publishing revenue rose 11% to $1.210 billion from $1.08 billion.
- Digital revenue grew 7.3% to $4.280 billion from $3.9 billion in 2023.
- Streaming revenue from recorded music subscriptions increased 8% to $2.543 billion from $2.349 billion (up 3% ad-supported).
- Operating income rose 4% to $823 million from $790 million, so operating margin fell slightly to 12.8% compared to the prior year when it was 13.1% of revenue.
WMG Q4 financial highlights:
- Total revenue rose 2.8% to $1.630 billion for the fourth quarter of 2024, from $1.586 billion in the same quarter of 2023.
- Net earnings, or net income, fell 69% to $48 million this quarter compared with $154 million.
- Digital revenue fell 0.2% to $1.066 billion from $1.068 billion.
- Streaming revenue for both recorded music and publishing rose 1% to $1.048 billion from $1.038 billion.
- Recorded music subscription streaming revenue rose 5% to $645 million from $615 million (down 5% ad-supported).
- Recorded revenue rose 3.6% to $1.338 billion from $1.291 billion.
- Publishing revenue fell 1% to $295 million from $298 million.
- Operating income fell 33% to $143 million from $212 million.
- OIBDA fell 22% to 226 million. dollars versus $291 million.
from our partners at https://www.billboard.com/pro/warner-music-group-earnings-q4-2024-revenue-digital-subscription-publishing/
