Warner Music Group has reported total revenue of $1.689 billion in calendar Q2 (fiscal Q3), representing a 7.0% YoY increase in constant currency.
Yet, when one-time items are excluded, the company’s underlying recorded music performance was significantly stronger than headline figures suggest.
Warner’s quarterly recorded music revenue of $1.354 billion was officially up 6.4% YoY in constant currency. But excluding one-time items, the underlying growth was actually up 8.3% YoY in constant currency.
Perhaps most important for watching analysts: When the one-times are omitted, Warner Music Group’s underlying subscription streaming recorded music revenue was up 8.5% YoY in constant currency.
This figure represents a reacceleration of growth in perhaps WMG’s most critical metric for investors. (In the firm’s last quarter, calendar Q1, WMG’s recorded music subscription revenue was up by 3.2% YoY – while overall recorded music revenues were up just 0.7% YoY.)
Robert Kyncl, CEO, Warner Music Group, said today (August 7): “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.”
WMG’s calendar Q2 2025 one-time adjustments cover two specific items:
- (i) The prior-year quarter (calendar Q2 2024) was boosted by +$22 million in catch-up payments from a digital service provider for previous periods; and
- (ii) Both quarters (calendar Q2 2024 and Q2 2025) were impacted by Warner’s terminated distribution agreement with BMG, which reduced current quarter revenue by $14 million compared to the prior year.
In addition, WMG’s recorded music result was impacted by +$16 million copyright settlement revenue in calendar Q2, which is also omitted to reach the underlying RM revenue growth figure.
Armin Zerza, CFO, Warner Music Group, said: “Our strong performance this quarter reflects our commitment to investing in great music, driving greater efficiency, and creating long-term value for our artists, songwriters, and shareholders.”
WMG’s calendar Q2: breaking down that $1.354B Recorded Music revenue
Within WMG’s $1.354 billion in recorded music revenue in calendar Q2, the firm’s streaming revenue (across ad-supported and subscription) totaled $895 million.
That was officially up 2.6% YoY in constant currency. However, excluding the one-time items, underlying streaming revenue growth was 5.8% YoY in constant currency.
Subscription recorded music streaming revenue reached $674 million, representing 4.2% YoY growth in constant currency. Yet on an underlying basis, as explained, this metric was up 8.5% YoY.
Ad-supported recorded music streaming revenue declined 1.8% YoY in constant currency to $221 million.
Warner’s biggest revenue-generating artists quarter included BAEKHYUN, ROSÉ, Bruno Mars, Grateful Dead and Teddy Swims.
Although WMG cited “strong market share gains in the US” to investors today, there was a particularly interesting geographic stat buried in its recorded music results: ex-US recorded music revenue grew significantly faster than revenue within the United States.
US-based recorded music revenue hit $536 million, up 4% YoY in constant currency (USD vs. USD); international recorded music revenue totaled $818 million, up 8% YoY in constant currency.
Elsewhere in WMG’s global recorded music results, physical revenue decreased 4.0% YoY in constant currency to $119 million, with the BMG termination accounting for $10 million of the decline.
Artist services and expanded-rights revenue increased 19.6% YoY in constant currency to $195 million, driven by higher concert promotion revenue primarily in France and Spain.
Licensing revenue increased 19.4% YoY in constant currency to $111 million, driven by licensing deals primarily in the U.K. and China, and timing of copyright infringement settlements.
WMG’s calendar Q2: Publishing generates $336 million
Warner’s music publishing division, led by Guy Moot and Carianne Marshall, posted $336 million in revenue, an increase of 9.4% YoY in constant currency.
Music publishing streaming revenue totaled $202 million, up 4.1% YoY in constant currency from $192 million in Q2 2024.
Total music publishing digital revenue reached $204 million, an increase of 4.6% YoY in constant currency.
WMG’s calendar Q2: Profits etc.
Warner’s adjusted OIBDA increased 15.8% YoY in constant currency to USD $373 million, with Adjusted OIBDA margin rising to 22.1% from 20.4% in constant currency.
Cash provided by operating activities decreased to $46 million compared to $188 million in the prior-year quarter, largely due to higher A&R spend and other movements in working capital.
The company reported a cash balance of $527 million as of June 30, 2025, with total debt of $4.363 billion and net debt of $3.836 billion.
Music Business Worldwide
