Warner Music's Q4 Revenue Declines 5% as US Recorded Music Sales Drop 15% Year-over-Year
Warner Music Group reported challenging Q4 2024 results, with overall revenue declining 5% year-over-year to $1.67 billion. Key financial highlights reveal significant pressures in the U.S. market and streaming segments.
Executive speaking at WMG earnings presentation
Key Financial Results:
- Total revenue: $1.67 billion (down 5% YoY)
- Recorded music revenue: $1.35 billion (down 7% YoY)
- U.S. recorded music revenue: $532 million (down 15% YoY)
- Subscription streaming revenue: $631 million (down 2% YoY)
- Ad-supported streaming revenue: $223 million (down 8% YoY)
Notable factors affecting revenue included:
- BMG's ADA split ($32 million impact across streaming and physical)
- Prior year's $30 million digital platform licensing renewal
- $75 million catalog licensing extension from previous year
Publishing Performance:
- Warner Chappell revenue: $323 million (up 6% YoY)
- U.S. publishing revenue: $173 million (up 1% YoY)
- International publishing revenue: $150 million (up 15% YoY)
- Publishing streaming revenue: $205 million (up 6% YoY)
Positive Developments:
- Physical revenue increased 7.8% YoY to $166 million
- New licensing agreement secured with Spotify
- Acquisition of controlling stake in Tempo Music
- CEO Robert Kyncl indicated minimal concerns regarding TikTok situation
Tori Amos wearing glasses and white shirt
The company's stock (NASDAQ: WMG) closed at $31.75, down approximately 1% following the earnings announcement. When excluding one-time factors, WMG reported that underlying revenue growth was positive at 3.4% YoY.
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