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Mar 31

WMG Q2 2025 Earnings Report

Results for Fiscal Second Quarter Ended March 31, 2025

Key Takeaways

Warner Music Group reported a 1% decrease in total revenue (or 1% increase in constant currency) for the fiscal second quarter ended March 31, 2025. Net income decreased significantly by 63% to $36 million, while operating income saw a strong increase of 41% to $168 million. Adjusted OIBDA decreased 3% to $303 million.

Total revenue decreased 1% to $1,484 million.

Net income decreased 63% to $36 million.

Operating income increased 41% to $168 million.

Adjusted OIBDA decreased 3% to $303 million.

Total Revenue
$1.48B
Previous year: $1.49B
-0.7%
EPS
$0.07
Previous year: $0.18
-61.1%
Adjusted OIBDA
$303M
Previous year: $312M
-2.9%
Adjusted OIBDA Margin
20.4%
Previous year: 20.9%
-2.4%
Recorded Music Adjusted OIBDA
$270M
Previous year: $272M
-0.7%
Gross Profit
$603M
Previous year: $620M
-2.7%
Cash and Equivalents
$637M
Previous year: $587M
+8.5%
Free Cash Flow
$33M
Previous year: -$57M
-157.9%
Total Assets
$9.57B
Previous year: $8.73B
+9.6%

WMG

WMG

WMG Revenue by Segment

WMG Revenue by Geographic Location

Forward Guidance

The company expects its strategy to drive lasting value for artists and songwriters, and sustained growth and profitability for shareholders.

Positive Outlook

  • Strongest chart presence in two years.
  • Expanding new release market share in the US.
  • Cost savings plans on track.
  • Reinvestment initiatives accelerating.
  • Expect to deliver lasting value for artists and songwriters.

Challenges Ahead

  • Results partially obscured by challenging comparisons with last year’s outperformance.
  • Lighter release slate in Recorded Music.
  • Market share loss in China in Recorded Music.
  • Soft overall ad environment impacting ad-supported revenue.
  • Decreased artist services and expanded-rights revenue.

Revenue & Expenses

Visualization of income flow from segment revenue to net income