Warner Music Group Reports Revenue and Profit Decline in Q2 Fiscal 2025

Warner Music Group Corp. reported a decrease in revenue and profitability for the second quarter of fiscal 2025, as outlined in its latest 10-Q filing. For the three months ended March 31, 2025, the company generated $1.484 billion in revenue, a decline of 1% from $1.494 billion in the same period last year. The net income attributable to Warner Music Group Corp. was $36 million, down from $96 million in the prior year, reflecting a 63% decrease. The decline in revenue was attributed to unfavorable currency exchange fluctuations and a decrease in digital and artist services revenues.

In terms of operational performance, Warner Music's Recorded Music segment saw revenues decrease by 1% to $1.175 billion, while Music Publishing revenues increased slightly by 1% to $310 million. The overall decrease in Recorded Music revenue was driven by lower digital and artist services revenues, partially offset by increases in physical and licensing revenues. The company noted that digital revenues fell by 1% to $841 million, with streaming revenue specifically declining by $3 million. The U.S. market contributed $497 million to Recorded Music revenues, down from $508 million, while international revenues remained relatively stable.

Strategically, Warner Music Group has been active in acquisitions, including the purchase of a 50.1% interest in Tempo Music Holdings for $76 million, which is expected to enhance its music rights acquisition capabilities. The company also continues to implement its Strategic Restructuring Plan, which aims to streamline operations and reduce costs. In the first half of fiscal 2025, the company incurred $40 million in restructuring and impairment charges, a significant reduction from $95 million in the same period last year.

The company’s total assets increased to $9.568 billion as of March 31, 2025, compared to $9.155 billion at the end of the previous fiscal year. Total liabilities also rose to $8.778 billion, up from $8.480 billion. Warner Music's cash and equivalents stood at $637 million, down from $694 million, while the company’s long-term debt was reported at $4.292 billion. The company remains committed to maintaining liquidity and has indicated that it expects to generate sufficient cash flow to meet its operational needs and debt obligations in the near term.

Looking ahead, Warner Music Group anticipates continued challenges in the market, particularly in digital revenue streams, but remains optimistic about growth opportunities through strategic investments and acquisitions. The company is focused on enhancing its operational efficiencies and leveraging its extensive catalog to capitalize on emerging trends in the music industry.