Warner Music Group Reports 4% Revenue Growth to $6.707 Billion for Fiscal Year 2025

Warner Music Group Corp. (WMG) reported total revenues of $6.707 billion for the fiscal year ended September 30, 2025, a 4% increase compared to $6.426 billion in the previous fiscal year. This growth was influenced by a $16 million favorable impact from the settlement of certain infringement cases and $4 million of incremental streaming revenue from a Digital Service Provider (DSP) for prior period performance obligations. However, revenue growth was partially offset by an $81 million decrease due to the BMG Termination. Excluding these factors, total revenues increased by 8%, including a $7 million favorable impact from currency exchange fluctuations. Net income attributable to Warner Music Group Corp. was $365 million, compared to $435 million in the prior year.

The company's Recorded Music segment generated revenues of $5.408 billion, up 4% from $5.223 billion in the prior year. This increase was driven by a 2% rise in digital revenue, primarily from streaming, and a 22% increase in artist services and expanded-rights revenue, attributed to higher merchandising and concert promotion revenue. Physical revenue also increased by 2%. However, licensing revenue decreased by 10%, primarily due to a $75 million licensing agreement extension in the prior year. Music Publishing revenues increased by 8% to $1.306 billion, driven by growth in digital, performance, synchronization, and mechanical revenue streams. Digital revenue increased by 5%, performance revenue increased by 15%, synchronization revenue increased by 13%, and mechanical revenue increased by 9%.

Key operational developments included a $100 million share repurchase program authorized by the board of directors, intended to offset dilution from the Omnibus Incentive Plan. As of September 30, 2025, the company had repurchased and retired 477,281 shares for $16 million. The company also continued to pay quarterly cash dividends, with $383 million distributed to stockholders during the fiscal year. The company also completed the acquisition of Tempo Music, which added approximately $311 million of asset-based securities due November 2050 to its balance sheet.

Looking ahead, WMG expects to realize approximately $300 million in annualized run-rate cost savings by the end of fiscal year 2027 from its 2025 Restructuring Plan. The company also anticipates that the majority of these cost savings will be accretive to Adjusted OIBDA. The company is focused on growing its market share, growing the value of music, and increasing efficiency through strategic investments and operational improvements.