WMG Q1 2025 Earnings Report
Key Takeaways
Warner Music Group's total revenue decreased by 5%, but net income increased by 25% to $241 million. The results were underpinned by the performance of new releases and catalog, as well as healthy global subscriber trends.
Warner Music Group and Spotify announced a new multi-year agreement covering both recorded music and music publishing.
Music Publishing delivered continued growth led by strength in performance and digital.
Operating Cash Flow grew by 13% with conversion of 91%.
The company is reaffirming full-year recorded music subscription streaming revenue and operating cash flow conversion guidance.
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WMG Revenue by Segment
Forward Guidance
The company is confident in its outlook, especially as the industry continues to evolve monetization models, which will help fuel future growth.
Positive Outlook
- New deal with Spotify will help deliver new fan experiences.
- New deal with Spotify will deliver a deeper music and video catalog.
- New deal with Spotify will deliver further paid subscription tiers.
- New deal with Spotify will deliver differentiated content bundles.
- The new publishing agreement introduces a direct licensing model with Warner Chappell Music in several additional countries including the U.S.