Reported Q: Q1 2025 Rev YoY: -4.7% EPS YoY: +200.0% Move: +1.89%
Warner Music Group Corp
WMG
$29.60 1.89%
Exchange NASDAQ Sector Communication Services Industry Entertainment
Q1 2025
Published: Feb 6, 2025

Company Status Snapshot

Fast view of the latest quarter outcome for WMG

Reported

Report Date

Feb 6, 2025

Quarter Q1 2025

Revenue

1.67B

YoY: -4.7%

EPS

0.45

YoY: +200.0%

Market Move

+1.89%

Previous quarter: Q4 2024

Follow this company to get upcoming quarter alerts automatically.

Earnings Highlights

  • Revenue of $1.67B down 4.7% year-over-year
  • EPS of $0.45 increased by 200% from previous year
  • Gross margin of 46.3%
  • Net income of 236.00M
  • ""Our engine is strong. We built up sustained momentum during 2024, delivering year-over-year double digit growth in subscription streaming revenue and adjusted OIBDA."" - Robert Kyncl
WMG
Company WMG

Executive Summary

Warner Music Group (WMG) reported a modest revenue decline in Q1 2025, with total revenue of $1.667 billion, down 4% year over year, and adjusted OIBDA down 18% to $453 million. On a GAAP basis, operating income was $214 million and net income was $236 million, translating to basic and diluted earnings per share of $0.45. The quarter was characterized by a pronounced currency headwind: roughly 58% of revenue is generated in non-dollar currencies, which management quantified as about a 200 basis point drag to adjusted OIBDA margins. Management framed the results within a three-pronged strategy to grow the pie (increase market share, expand the value of music with DSP partners, and drive efficiency) and highlighted recent strategic actions, notably the Tempo Music acquisition, designed to create a high-margin evergreen catalog and incremental long-term cash flow. The company reinforced its expectation for high-single-digit subscription streaming growth for the year (adjusted for notable items and BMG effects) but did not reaffirm near-term margin expansion targets due to FX volatility. Free cash flow was solid at $296 million, and operating cash flow was $332 million, with a strong 91% operating cash flow conversion relative to adjusted OIBDA. Looking ahead, the convergence of stronger DSP partnerships (Spotify and Amazon renewals), a robust catalog strategy, and Tempo-driven earnings accretion underpin a constructive long-term investment thesis, even as near-term FX headwinds and revenue mix effects temper margin expansion in the current year.

Key Performance Indicators

Revenue
Decreasing
1.67B
QoQ: 2.21% | YoY: -4.69%
Gross Profit
Decreasing
772.00M
46.34% margin
QoQ: -0.52% | YoY: -11.06%
Operating Income
Decreasing
214.00M
QoQ: 49.65% | YoY: -39.55%
Net Income
Increasing
236.00M
QoQ: 475.61% | YoY: 48.43%
EPS
Increasing
0.45
QoQ: 1 446.39% | YoY: 200.00%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 1,484.00 0.07 -0.7% View
Q1 2025 1,666.00 0.45 -4.7% View
Q4 2024 1,630.00 0.03 +2.8% View
Q3 2024 1,554.00 0.13 -0.6% View
Q2 2024 1,494.00 0.09 +6.8% View