Warner Music Group Corp. announced its financial results for the second quarter ended March 31, 2025, on May 8, 2025. Total revenue decreased 0.7% to $1,484 million, though it increased 1.2% in constant currency, missing analyst estimates.
GAAP earnings per share (EPS) was $0.07, falling short of analyst consensus estimates. Net income decreased significantly by 62.5% to $36 million, primarily due to the impact of exchange rates on Euro-denominated debt and hedging losses.
Adjusted OIBDA decreased 2.9% to $303 million, or 1.0% in constant currency, with the margin declining by 0.5 percentage points to 20.4%. This was largely attributed to revenue mix, partially offset by savings from the Strategic Restructuring Plan.
Recorded Music revenue decreased 1.2% (up 0.7% in constant currency), with streaming revenue down 0.4% (up 1.6% in constant currency). Subscription revenue grew 1.1% (3.2% in constant currency), but ad-supported revenue declined 4.7% (2.9% in constant currency).
The company cited challenging year-over-year comparisons in subscription streaming, a lighter release slate, and market share loss in China as factors impacting performance. Music Publishing revenue, however, increased 1.3% (3.0% in constant currency), driven by growth across digital, performance, synchronization, and mechanical revenues.
Cash provided by operating activities improved to $69 million from a use of $31 million in the prior-year quarter, and Free Cash Flow increased to $33 million from a use of $57 million. Total debt stood at $4.292 billion, including $302 million of subsidiary debt from the Tempo Music acquisition.
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