Warner Music Group Grows Revenue, Profits in Fiscal Q3

Warner Music Group reported double-digit revenue growth, expanding margins and higher profitability in fiscal Q3, driven by streaming growth, improved DSP economics, market share gains and lower restructuring costs.

Overall performance:

• Revenue increased 10.4% year over year (9.3% in constant currency), with streaming revenue up 12.3%.

• Adjusted OIBDA increased 16.1% (14.6% constant currency) to $433 million, with margin expanding to 23.2%, primarily driven by strong operating performance, revenue mix and savings from the company’s restructuring plans.

• Operating income rose 80.5% to $305 million, reflecting stronger operating performance, improved revenue mix, and a $62 million reduction in restructuring and impairment charges compared with the prior-year quarter.

Recorded Music:

• Revenue increased 9.9% (8.9% constant currency), driven by increases across digital, artist services and expanded rights and physical revenue.

• Streaming revenue grew 11.8% (10.1% constant currency), supported by subscriber growth, market share gains and improved DSP deal terms.

• Adjusted OIBDA increased 17.4% (15.6% in constant currency) to $377 million.

Music Publishing:

• Revenue increased 12.2% (10.9% in constant currency), led by growth across digital, synchronization, mechanical and performance revenue.

• Adjusted OIBDA rose 13.5% to $109 million, supported by higher revenue and continued operational strength.

What they said:

• Robert Kyncl, CEO, Warner Music Group: “For the fifth consecutive quarter, WMG has delivered or over-delivered on our targets, proving the strength of our strategy and the momentum of our business. Our performance – driven by robust subscription streaming growth, market share gains, and disciplined operating leverage – highlights our ability to champion human creativity while deploying tech and AI to scale long-term profitability. We are closing the year with sharp operational focus and strong positioning to generate compounding value for our artists, songwriters, and shareholders for many years to come.”