Warner Music Earnings and Revenue Drop After Strong Results Last Year

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In its second fiscal quarter, Warner Music recorded a net profit of $36 million – a significant decrease of 63% compared to the $96 million they earned during the same period the previous year.

The firm recorded approximately 1 billion dollars in sales for the recent quarter, representing a 1% decrease compared to the same period last year. Similarly, the adjusted earnings before operating expenses decreased by nearly 1%, totaling around 270 million dollars.

The decrease in the company’s net income is due to challenging comparisons with last year’s record highs, as well as the negative influence of exchange rates on its Euro-denominated debt. This led to a $34 million loss in the recent quarter, which follows a $21 million gain in the previous quarter and an additional $11 million increase in income tax costs.

In simpler terms, the income from recorded music decreased by approximately 1%, similar to the decline in total music income. On the other hand, publishing revenue increased slightly by around 1%.

Warner Music Group’s strategy is showing positive results, as we’ve seen our best performance on charts in the past two years, which has led to an increase in market share for new releases in the US. However, this quarter’s true strength was somewhat overshadowed by tough comparisons to last year’s exceptional performance. As we expand our strategy to other labels and regions, and continue to reinvest more, we anticipate creating long-term value for artists, songwriters, and shareholders, while also ensuring continued growth and profitability,” stated Robert Kyncl, CEO of Warner Music Group.

More to come.

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2025-05-08 15:24