Warner Music Group Eyes Price Increases as Q3 Streaming Revenue Shows Modest 2% Growth
Warner Music Group (WMG) reported its Q3 2024 financial results, showing modest streaming revenue growth amid plans for wholesale price increases.
Key Financial Highlights:
- Overall streaming revenue increased 1% YoY to $1.05 billion
- Recorded subscription revenue grew 5% YoY to $645 million
- Ad-supported revenue declined 5% YoY to $221 million
- Publishing streaming revenue decreased 4% YoY to $182 million
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12-Month Performance (ended September 30th):
- Recorded subscription revenue up 8% YoY to $2.54 billion
- Ad-supported revenue increased 3% YoY to $901 million
- Publishing streaming revenue grew 15% YoY to $752 million
CEO Robert Kyncl emphasized growth opportunities through:
- Increased music streaming penetration in mature markets
- Wholesale price increases across platforms
- Reduction in discount and family plan offerings
- Enhanced superfan initiatives
Additional Performance Metrics:
- Physical sales (vinyl and CDs) increased from $130M to $134M
- U.S. recorded revenue grew 1% YoY to $2.21 billion
- International recorded revenue up 9% YoY to $3.01 billion
Despite the company's optimistic outlook, WMG stock declined 9.24% to $30.56 following the earnings announcement. The company has announced a new $100 million stock buyback program.
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