WMG posts $1.73bn revenue as streaming growth drives quarterly gains

The company said the results reflected gains across its recorded music and publishing divisions, alongside improved profitability and operational efficiency.

Recorded music revenue rose 12.7% to $1.38 billion, while music publishing revenues at Warner Chappell Music increased 9.6% to $353 million. Subscription streaming revenue climbed 12.7% to $734 million, supported by market share gains and price increases across major platforms.

“Our Q2 results demonstrate the powerful combination of creative and operational success, as well as financial discipline, providing clear evidence that our strategic transformation is working,” WMG chief executive Robert Kyncl said. “Anchored by our three strategic pillars to grow share, increase the value of music, and improve efficiency and effectiveness, our momentum is building.”

He added that the company remains focused on long-term value creation for artists, songwriters and shareholders.

Within recorded music, streaming revenue reached $961 million, while ad-supported streaming grew 10.2% to $227 million, reversing a decline in the prior year. The company attributed the improvement to a stronger advertising market.

Subscription streaming growth was also supported by recent price increases on major platforms, including Spotify’s US premium price adjustment earlier this year.

Artist services and expanded rights revenue rose 33.3% to $164 million, driven by higher concert promotion activity in France and increased merchandise sales. Physical revenue increased 18.1% to $137 million, supported by strong new releases and catalogue sales. Licensing revenue fell 6.3% to $104 million.

In publishing, digital revenue growth was driven by new licensing agreements and renewals, while performance income rose 3.6% due to increased touring activity in Europe. Synchronisation revenue declined slightly to $50 million.

Net income for the quarter increased significantly to $181 million, compared with $36 million a year earlier. Operating income rose 45.1% to $264 million, while adjusted OIBDA increased 24.5% to $397 million. The adjusted OIBDA margin improved to 22.9%, up from 20.4%.

Chief financial officer Armin Zerza said the results reflected continued execution of the company’s growth strategy.

“For the fourth consecutive quarter, we have delivered on our sustainable growth model, accelerating core growth, margin expansion, and cash flow productivity,” he said.

He added that disciplined investment and cost management, combined with creative and technology initiatives, positioned the company for long-term growth.