{"id":231083,"date":"2025-05-08T15:22:04","date_gmt":"2025-05-08T14:22:04","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=231083"},"modified":"2025-05-08T15:26:49","modified_gmt":"2025-05-08T14:26:49","slug":"warner-music-group-generated-1-48bn-in-calendar-q1-2025-subscription-streaming-revenues-rose-3-2-yoy","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/warner-music-group-generated-1-48bn-in-calendar-q1-2025-subscription-streaming-revenues-rose-3-2-yoy\/","title":{"rendered":"Warner Music Group generated $1.48bn in calendar Q1 2025; subscription streaming revenues rose 3.2% YoY"},"content":{"rendered":"MBW\u2019s Stat Of The Week is a series in which we highlight a data point that deserves the attention of the global music industry. Stat Of the Week is supported by\u00a0music data analytics firm\u00a0Chartmetric<\/a>.\r\n\r\n
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Warner Music Group<\/a> <\/strong>has issued its financial results for the three months ended March 31, 2025 (calendar Q1 \u2013 the company\u2019s fiscal Q2).<\/p>\n

According to the company\u2019s fiscal Q2 (calendar Q1) results, WMG saw its quarterly global company-wide revenues reach\u00a0USD $1.484 billion<\/strong>\u00a0(across recorded music, music publishing, and other activities).<\/p>\n

Total revenue was\u00a0up 1.2%<\/strong> YoY<\/strong><\/span> at constant currency. The company pinned its revenue performance on “lower Recorded Music artist services and expanded-rights revenue,” which it said was “partially offset by higher licensing and physical revenue and growth across Music Publishing digital, performance, synchronization and mechanical revenue”.<\/p>\n

Warner’s calendar Q1 results arrive alongside the news that\u00a0half the Top 10 of the Billboard Global Chart<\/a> is currently occupied by WMG artists, including the Top 3, with rising star Alex Warren’s<\/strong>\u00a0hit Ordinary<\/em> at No.1.<\/p>\n

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“Our strategy is starting to bear fruit, with our strongest chart presence in two years, translating to expanding new release market share in the US.”<\/p>\n

Robert Kyncl<\/strong><\/span><\/p><\/blockquote>\n

\u201cOur strategy is starting to bear fruit, with our strongest chart presence in two years, translating to expanding new release market share in the US,” said Warner Music Group CEO Robert Kyncl<\/strong> in a note to investors on Thursday (May 8).<\/p>\n

He added: “As a result, our true strength this quarter was partially obscured by challenging comparisons with last year\u2019s outperformance.<\/p>\n

“As we replicate our strategy across other labels and geographies, and drive a virtuous cycle of greater reinvestment, we expect to deliver lasting value for artists and songwriters, and sustained growth and profitability for shareholders.”<\/p>\n

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RECORDED MUSIC<\/h6>\n

Warner Music Group\u2019s recorded music revenues were up 0.7% YoY<\/strong><\/span>\u00a0at constant currency to\u00a0$1.175 billion. <\/strong><\/p>\n

According to WMG, this performance was “driven by decreases across digital and artist services and expanded-rights revenue” and was “partially offset by growth in physical and licensing revenue”.<\/p>\n

Warner\u2019s recorded music\u00a0streaming<\/em> revenue (including ad-supported and subscription) was up 1.6%<\/span> YoY<\/span><\/strong> on a constant currency basis to $825 million<\/strong>\u00a0(see below).<\/p>\n

The company said in its filing on Thursday that “streaming revenue was impacted by a challenging year-over-year comparison, largely in subscription streaming revenue, compounded by a lighter release slate and market share loss in China”.<\/p>\n

WMG also breaks that streaming figure down in its balance sheet to highlight the performance of its subscription<\/strong>\u00a0streaming and\u00a0ad<\/strong>\u2013supported<\/strong>\u00a0streaming revenues, respectively.<\/p>\n

The company\u2019s revenues from recorded music\u00a0subscription<\/em>\u00a0streaming reached\u00a0$622 million<\/strong> in calendar Q1, up 3.2%<\/span> YoY<\/strong><\/span> at constant currency.<\/p>\n

WMG generated\u00a0$203 million<\/strong>\u00a0in\u00a0ad-supported<\/em> recorded music streaming revenues in calendar Q1, which was down 2.9% YoY<\/strong>\u00a0<\/span>at constant currency.<\/p>\n

WMG said that “the decrease in ad-supported revenue was driven by a soft overall ad environment”.<\/p>\n

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Elsewhere in Recorded Music, WMG’s Licensing revenue increased 2.9% YoY <\/strong><\/span>at constant currency to reach $105 million<\/strong>, driven, according to WMG, “by licensing deals primarily in Japan and the US, partially offset by the timing of copyright infringement settlements”.<\/p>\n

Artist services and expanded-rights revenue reached $117 million,<\/strong> down 5.6% YoY<\/strong><\/span> at constant currency due, according to WMG, “to lower concert promotion revenue primarily in France, lower direct-to-consumer merchandising revenue at EMP, and a decrease in revenue related to winding down the Company\u2019s owned and operated media properties in the prior-year quarter”.<\/p>\n

Physical revenue increased 1.8% YoY<\/strong><\/span> at constant currency to reach $112 million<\/strong>, driven, WMG said, “by new releases in the quarter, primarily in the US and Japan, partially offset by the impact of the BMG Termination<\/a>“.<\/p>\n

WMG’s top physical sellers in the quarter included Mac Miller\u2019s Balloonerism<\/em>\u00a0and new releases from ONE<\/strong> OK<\/strong> ROCK<\/strong> and TWICE<\/strong>.<\/p>\n

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Music Publishing<\/h6>\n

Warner\u2019s global music publishing division \u2013\u00a0Warner Chappell Music<\/a> \u2013 saw its quarterly revenues increase by 3% YoY<\/strong><\/span>\u00a0at constant currency to\u00a0$310 million.<\/strong><\/p>\n

WMG reported that the increase was driven by growth across digital, performance, synchronization and mechanical revenue.<\/p>\n

Music publishing streaming revenue increased 1.6% YoY<\/strong> <\/span>at constant currency to $185 million, <\/strong>driven, WMG said, “by the impact of digital deal renewals primarily in the US”.<\/p>\n

Performance revenue increased 6% YoY<\/strong><\/span> at constant currency to $53 million<\/strong>, attributable, per WMG’s earnings report, “to growth from concerts, radio and live events primarily outside of the US”.<\/p>\n

Synchronization revenue increased 2.1% YoY<\/strong> <\/span>at constant currency to $49 million, <\/strong>due to “higher television and commercial licensing activity and the impact of acquisitions, partially offset by the timing of copyright infringement settlements,” WMG said on Thursday.<\/p>\n

Mechanical revenue increased 14.3% YoY<\/strong><\/span> at constant currency to $16 million<\/strong>, driven by “higher physical sales” in the quarter.<\/p>\n

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WARNER\u2019S CALENDAR Q1 2025 IN SUMMARY (% IN CONSTANT CURRENCY):<\/h6>\n