Warner Music Q2 2025: Revenue Rises 9%

Warner Music Group has announced its Q2 2025 (fiscal third quarter) results, highlighting a revenue reacceleration across Recorded Music and Music Publishing.

Overall Q2 stats:

• Total revenue increased 9%, or 7% in constant currency, to $1.689 billion.

• Net loss was $16 million, compared to net income of $141 million in the prior-year quarter.

• Operating income decreased 18% to $169 million, versus $207 million in the prior-year quarter.

• Adjusted OIBDA increased 15.8% YoY in constant currency to $373 million, versus $316 million in the prior-year quarter.

• Cash provided by operating activities decreased to $46 million, versus $188 million in the prior-year quarter.

Recorded Music revenue:

• Accounted for $1.354 billion, up 6.4% YoY in constant currency.

• Excluding one-time items, such as the termination of the distribution agreement with BMG (which resulted in $14 million less Recorded Music revenue compared to the prior-year quarter), the underlying growth was actually 8.3% YoY in constant currency.

• Again, excluding one-off factors in the prior year quarter, streaming revenue increased 5.8% YoY in constant currency and subscription revenue grew 8.5% to reach $674 million.

• Ad-supported recorded music streaming revenue was down 1.8% YoY in constant currency to $221 million.

• Top sellers included BAEKHYUN, ROSÉ, Bruno Mars, Grateful Dead and Teddy Swims.

• Physical revenue decreased 4.0% YoY in constant currency to $119 million.

• Artist services and expanded-rights revenue increased 19.6% YoY in constant currency to $195 million, thanks to higher concert promotion revenue, mostly in France and Spain.

• Licensing was up 19.4% YoY in constant currency to $111 million, driven by licensing deals largely in the UK and Canada, as well as the timing of copyright infringement settlements.

Music Publishing revenue:

• Up 9.4% YoY in constant currency to $336 million, courtesy of growth across digital, performance, sync and mechanical revenue.

• Music publishing digital revenue spiked by 4.6% YoY in constant currency to $204 million.

• Music publishing streaming revenue was up 4.1% YoY in constant currency to $202 million.

• Performance revenue was up 9.4% YoY in constant currency, driven by growth from concerts, radio and live events primarily in Europe.

• Sync revenue grew by 28.6% YoY in constant currency due to the timing of copyright infringement settlements, higher television and commercial licensing activity, and the $3 million impact of WMG’s acquisition of Tempo.

• Mechanical revenue increased 14.3% YoY in constant currency.

What they said:

• Robert Kyncl, CEO, Warner Music Group: “This quarter we delivered massive chart hits, breakthrough stars, strong revenue growth, and market share gains…all of which show our strategy is working. As we continue to evolve our company, we’re focusing on the artists, songwriters, and markets with the greatest potential, while expanding our iconic catalog, and building the dynamic teams and tools that will help our talent have the biggest global impact.”