Warner Music Q4 Revenue Declines 5% Amid US Streaming Slowdown and 15% Drop in Recorded Music
Warner Music Group reported a 5% year-over-year revenue decline to $1.67 billion in Q4 2024, with notable challenges in its U.S. recorded music segment, which fell 15% to $532 million.
Executive speaking at WMG earnings presentation
Key Financial Highlights:
- Total recorded music revenue: $1.35 billion (down 7% YoY)
- Subscription streaming revenue: $631 million (down 2% YoY)
- Ad-supported streaming revenue: $223 million (down 8% YoY)
- Physical revenue: $166 million (up 7.8% YoY)
- Publishing revenue (Warner Chappell): $323 million (up 6% YoY)
Several factors influenced these results:
- BMG's ADA split resulted in $32 million decreased revenue
- Prior year included a $30 million digital platform licensing renewal
- A $75 million catalog licensing extension from Q4 2023 affected comparisons
Excluding these one-time factors, WMG claims:
- Overall revenue would have increased 3.4% YoY
- Recorded music streaming revenue would have grown 1.5% YoY
International Performance:
- Non-U.S. recorded revenue remained stable at $813 million
- International publishing revenue grew 15% YoY to $150 million
- U.S. publishing revenue increased 1% YoY to $173 million
During the earnings call, CEO Robert Kyncl downplayed concerns about TikTok's impact on revenue. The company also announced a new Spotify licensing agreement and the acquisition of a controlling stake in Tempo Music.
Tori Amos wearing glasses and white shirt
WMG stock (NASDAQ: WMG) closed at $31.75, down approximately 1% following the earnings announcement.
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