Warner Music Q4 Revenue Dips 5% as US Market Shows 15% Decline Amid Streaming Slowdown
Warner Music Group reported a 5% year-over-year revenue decline to $1.67 billion in Q4 2024, with notable challenges in U.S. recorded music and streaming segments.
Executive speaking at WMG earnings presentation
Key Financial Highlights:
- Overall 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)
- Physical revenue: $166 million (up 7.8% YoY)
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)
Contributing Factors to Revenue Decline:
- BMG's ADA split ($32 million impact)
- Prior-year digital platform licensing renewal ($30 million)
- Previous catalog licensing extension ($75 million)
Notable Developments:
- New licensing agreement with Spotify
- Acquisition of controlling stake in Tempo Music
- CEO Robert Kyncl downplayed concerns about TikTok's impact
- Stock closed at $31.75 per share (down 1%)
Excluding one-time factors, the company reported a 3.4% YoY revenue growth, though concerns persist about U.S. subscription growth and streaming performance.
Tori Amos wearing glasses and white shirt
The company's international markets remained relatively stable, with non-U.S. recorded revenue at $813 million, essentially flat year-over-year. Currency conversion rates significantly impacted quarterly performance comparisons.
Related Articles
Antonio Brown Claims to Headline Controversial Fyre Festival II
