Warner Music Group reported modest streaming revenue growth in Q3 2024, with overall streaming revenue increasing by 1% year-over-year to $1.05 billion. The company's recorded subscription revenue grew 5% to $645 million, while ad-supported revenue declined 5% to $221 million.

Key Financial Highlights:

• Digital revenue: 0.2% YoY decrease
• Subscription streaming revenue: 5% increase to $645M
• Ad-supported revenue: 5% decrease to $221M
• Publishing streaming revenue: 4% decline to $182M

CEO Robert Kyncl emphasized future growth potential, citing low music streaming penetration in mature markets and opportunities for wholesale price increases. The company is currently negotiating new terms with Spotify and exploring additional revenue streams through superfan initiatives and potential adjustments to discount and family plans.

Notable Performance Metrics:

• Physical sales (vinyl/CDs): Increased from $130M to $134M
• U.S. recorded revenue: 1% YoY growth ($2.21B total)
• International recorded revenue: 9% YoY growth ($3.01B)

The company's fiscal year results show stronger performance compared to Q3, with recorded subscription revenue growing 8% YoY to $2.54 billion over the 12 months ended September 30th. WMG has announced a $100 million buyback program, though its stock declined 9.24% to $30.56 per share following the earnings report.

Related Articles

Previous Articles