Warner Music Group reported solid digital growth in Q2 2024, despite a minor 0.6% year-over-year revenue decrease. Total revenue reached $1.55 billion, with net income growing 13.7% to $141 million and free cash flow increasing over 40% to $160 million.

Key Financial Highlights:

• Recorded music revenue: $1.25 billion (2.4% YoY decrease)
• Digital revenue: $882 million (increased by $36 million YoY)
• Publishing revenue (Warner Chappell): $305 million (up $22 million YoY)
• Subscription streaming growth: 5% YoY for recorded streaming
• Subscription revenue growth: 7% YoY

Notable Performance Factors:

• Physical sales declined to $120 million (down $6 million)
• Licensing decreased to $90 million (down $2 million)
• Artist services revenue dropped to $159 million (down $59 million)
• Digital publishing revenue increased by $12 million to $194 million
• Performance rights grew by $12 million to $52 million

CEO Robert Kyncl emphasized the company's strong subscription streaming growth, attributing it to music performance and healthy industry trends. He highlighted WMG's focus on artist development and structural changes in recorded music to enhance talent support.

The results challenge industry concerns about streaming growth slowdown, particularly as Warner Music shows digital gains under Kyncl's leadership. This performance distinguishes WMG from its larger competitors, demonstrating that each major label faces unique market conditions and growth trajectories.

WMG's stock responded positively to the earnings report, rising 3.5% to $29.10 per share, reflecting investor confidence in the company's digital strategy and overall performance.

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