From GlobeNewswire: 2025-02-06 07:30:00

Warner Music Group and Spotify have announced a new multi-year agreement covering recorded music and music publishing, with strong growth in music publishing. Operating cash flow grew by 13% with a conversion rate of 91%. Financial highlights for the three months ended December 31, 2024, show a 5% decrease in total revenue, but a 25% increase in net income to $241 million. Operating income decreased by 40% to $214 million, and Adjusted OIBDA decreased by 20% to $363 million. The company’s CFO, Bryan Castellani, expressed confidence in the outlook, citing success with new releases and catalog performance. Warner Music Group’s CEO, Robert Kyncl, highlighted the company’s efforts to grow the pie and share of the pie, increasing A&R spend, acquiring valuable catalogs, and striking key agreements with streaming services. Total revenue for Warner Music Group was down 4.7% (or 3.6% in constant currency) for the three months ended December 31, 2024. Recorded Music revenue was impacted by licensing agreements and distribution terminations. Digital revenue decreased by 2.0% (or 0.7% in constant currency), and streaming revenue decreased by 1.9% (or 0.7% in constant currency). Adjusted OIBDA decreased by 20% to $363 million. Operating income decreased by 40% to $214 million. Warner Music Group announced an agreement with Spotify to shape the future of audio-visual streaming and enhance the value of music, introducing new fan experiences, deeper music and video catalogs, paid subscription tiers, and content bundles. The new publishing agreement includes a direct licensing model with Warner Chappell Music in additional countries, benefiting songwriters in the evolving music ecosystem. Warner Music Group acquired a controlling stake in Tempo Music Investments, an investment platform for premium music rights, from Providence Equity Partners. This investment will provide additional revenue at a high margin and expand the company’s distribution scope. Warner Music Group reported a cash balance of $802 million, total debt of $3.955 billion, and net debt of $3.153 billion as of December 31, 2024. Cash provided by operating activities increased by 13% to $332 million in the quarter, driven by movements in deferred revenue and capital expenditures. Free Cash Flow increased by 12% to $296 million. Warner Music Group announced its first-quarter financial results for the period ended December 31, 2024, with total revenue decreasing by 5% to $1,666 million. Recorded Music revenue was down 7% to $1,345 million, while Music Publishing revenue grew by 6% to $323 million. Operating income decreased by 40% to $214 million, and Adjusted OIBDA decreased by 20% to $363 million. The company reported a net income increase of 25% to $241 million. Warner Music Group’s CEO, Robert Kyncl, and CFO, Bryan Castellani, expressed confidence in the company’s outlook and growth opportunities in the changing music industry landscape. Warner Music Group’s financial results for the three months ended December 31, 2024, showed a 5% decrease in total revenue and a 25% increase in net income to $241 million. Operating income decreased by 40% to $214 million, and Adjusted OIBDA decreased by 20% to $363 million. The company’s cash provided by operating activities increased to $332 million, with Free Cash Flow reaching $296 million. Warner Music Group and Spotify have announced a new multi-year agreement covering recorded music and music publishing. The deal aims to enhance the value of music and shape the future of audio-visual streaming, introducing new fan experiences, expanded catalogs, paid subscription tiers, and content bundles. Warner Music Group’s continued growth in music publishing, operating cash flow, and strategic investments demonstrate a strong financial performance and growth trajectory in the evolving music industry landscape.



Read more at GlobeNewswire:: Warner Music Group Corp. Reports Results for Fiscal First