WARNER MUSIC Q4 REVENUE JUMPS 2.8%

Warner Music Group enjoyed a 2.8% increase in revenue to $1.63b amid its fiscal Q4 results, despite a 69% drop in net income to $48m.

The company attributed the latter to high interest and exchange rates and saw subscription streaming growth for a fourth consecutive quarter, with a 9.7% uptick in revenue.

Specific recorded music revenue jumped 3.6% to $1.33b thanks to gains in licensing, digital, physical, artist services and expanded rights. That helped offset a 1% decline in music publishing revenue to $295m, a figure impacted by the loss of $25m from the termination of a BMG distribution deal.

Full-year revenue rose 6% at $6.4b compared to 2023, while net income of $478 million reflected a 9% increase. The company's top sellers in the quarter were Benson Boone, Zach Bryan, Teddy Swims, Dua Lipa and Charli xcx.

WMG CEO Robert Kyncl said the company increased its A&R investment by approximately 11% in fiscal 2024 and "will consider bolt-on acquisitions that accelerate our progress while meeting our return thresholds."

He added that the WMG board has authorized a share repurchase program of up to $100m, which "demonstrates our confidence in the value of our company and our optimism for the path ahead."

"Our performance this quarter and this year demonstrated our strength and adaptability in a thriving, fast-moving market," Kyncl elaborated. "We continue to evolve WMG based on the principle that simplicity and focus drive higher intensity and global impact. This is enhancing our ability to attract original artists and songwriters at all stages of their careers, helping them realize their musical visions and grow passionate, loyal fan bases."

Said WMG CFO Bryan Castellani, "These results underscore the diversity and resilience of our business. Our strong streaming performance, underpinned by positive industry trends, combined with our cost discipline, resulted in robust cash-flow generation. We are excited by the opportunities ahead and look forward to delivering more culture-shaping music in 2025 and beyond."