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Warner Music Group Corp. (WMG-1.15%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenues to $1,666 million from $1,748 million in the same quarter the previous year. The decrease is attributed to the termination of a distribution agreement with BMG and the impact of a prior licensing extension.
Recorded Music revenues decreased by 7% to $1,345 million, driven by declines in digital, licensing, and artist services revenues, partially offset by an increase in physical revenue.
Music Publishing revenues increased by 6% to $323 million, driven by growth in digital and performance revenues.
Total digital revenues decreased by 2% to $1,082 million, with streaming revenue showing a slight decline.
Cost of revenues increased by 2% to $894 million, with artist and repertoire costs rising due to revenue mix changes.
Selling, general, and administrative expenses remained relatively flat at $474 million, with savings from a strategic restructuring plan offset by currency exchange impacts.
Net income for the quarter was $241 million, up from $193 million in the previous year, with the increase driven by foreign currency gains and a gain on the sale of an investment.
The company reported a decrease in operating income to $214 million from $354 million, reflecting restructuring and impairment charges.
Warner Music Group continues to focus on its core Recorded Music and Music Publishing businesses, with plans to invest in new skill sets and technology capabilities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Warner Music Group Corp. quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.