Warner Music Group reported strong streaming growth in Q2 2024, with overall revenue reaching $1.55 billion despite a slight 0.6% year-over-year decrease. Net income grew 13.7% to $141 million, while free cash flow increased by 40% to $160 million.

Key Financial Highlights:

• Recorded music revenue: $1.25 billion (2.4% YoY decrease)
• Digital revenue: $882 million (increased by $36 million YoY)
• Publishing revenue (Warner Chappell): $305 million (up $22 million YoY)
• Subscription streaming growth: 5% YoY for recorded streaming
• Subscription revenue growth: 7% YoY

Notable Changes:

• Physical sales declined to $120 million (down $6 million)
• Licensing revenue decreased to $90 million (down $2 million)
• Artist services revenue dropped to $159 million (down $59 million)

Warner Chappell Performance:

• Digital revenue: $194 million (up $12 million)
• Performance revenue: $52 million (up $12 million)
• Mechanical royalties: $13 million (down $3 million)
• Sync revenue: $42 million (slight increase)

CEO Robert Kyncl emphasized the company's strong subscription streaming growth, attributing it to music performance and healthy industry trends. He highlighted WMG's commitment to artist development and structural improvements in recorded music operations.

The results demonstrate Warner Music Group's resilience in the streaming market, particularly noteworthy given industry concerns about streaming growth slowdown. As the smallest of the "Big Three" major labels, WMG's digital growth under Kyncl's leadership suggests effective adaptation to market conditions and successful strategic positioning.

At the time of reporting, WMG's stock was trading up 3.5% at $29.10 per share.

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