Warner Music Group Corp

Latest Results (21.11.2025):

Warner Music Group Corp. reported results for its second quarter of fiscal 2025 (period ended March 31, 2025). The quarter showed mixed results: modest revenue weakness (flat to slightly down on a reported basis but up in constant currency), stronger operating income, but a sharp decline in net income driven by FX and hedging impacts. Cash flow and free cash flow improved materially while cost‑savings and reinvestment initiatives continued to progress.

Revenue

Total revenue declined about 1% on a reported basis (up ~1% in constant currency). Digital and streaming were broadly stable in constant currency, while physical, licensing and certain publishing streams showed growth; declines were driven by artist services/expanded-rights and a softer ad‑supported streaming environment.

Operating performance

Operating income rose 41% to $168 million (up ~47% in constant currency). Adjusted OIBDA fell 2.9% to $303 million (down 1.0% in constant currency), with margin slipping to 20.4% from 20.9%, reflecting revenue mix partially offset by cost savings from the Strategic Restructuring Plan and some reinvestment of those savings.

Net income and EPS

Net income decreased roughly 63% to $36 million (from $96 million prior year). Basic and diluted EPS for both Class A and Class B were $0.07. The decline was materially influenced by FX losses on Euro‑denominated debt, hedging losses, and higher tax expense vs. the prior year.

Cash flow & liquidity

Cash provided by operating activities improved to $69 million from a use of $31 million a year earlier. Free cash flow turned positive to $33 million from a prior‑year use of $57 million. Cash on hand was $637 million as of March 31, 2025.

Debt and net leverage

Total debt stood at $4.292 billion (including $302 million of Tempo subsidiary debt that is nonrecourse to the company), and net debt was $3.655 billion as reported.

Recorded Music segment

Recorded Music revenue was down ~1.2% on a reported basis (up modestly in constant currency). Streaming showed subscription growth but weaker ad‑supported revenue; artist services/expanded‑rights and some regional softness weighed on top line. Recorded Music operating income rose 51.5% to $203 million; Adjusted OIBDA was $270 million, essentially flat year‑over‑year on a reported basis and up in constant currency, with a 23.0% margin.

Music Publishing segment

Music Publishing revenue increased ~1.3% (3.0% in constant currency), driven by digital, performance, synchronization and mechanical growth. Operating income fell to $52 million (down 24.6%) while Adjusted OIBDA rose to $85 million, up 3.7% (4.9% in constant currency).

Cost savings & reinvestment

The company reported its cost‑savings plans are on track under the Strategic Restructuring Plan. Restructuring and impairment charges were substantially lower versus the prior year (reducing charges by roughly $82 million), with a portion of savings being reinvested to support releases and growth initiatives.