Japan records surprise trade deficit in July as exports weaken further
NEW YORK - Warner Music Group (NASDAQ:WMG) Corp on Thursday reported first-quarter earnings that surpassed analyst expectations, while revenue fell short of estimates.
The company’s stock edged up 1.25% following the announcement.
For the quarter ended December 31, 2024, Warner Music Group posted adjusted earnings per share of $0.45, beating the analyst consensus of $0.38 by $0.07. Revenue for the period came in at $1.67 billion, slightly below the $1.69 billion analysts had projected.
Total (EPA:TTEF) revenue decreased 5% YoY, or 4% in constant currency. The company attributed the decline to several factors, including a licensing agreement extension for an artist’s catalog in the prior-year quarter and the termination of a distribution agreement with BMG.
Digital revenue, a key metric for the music industry, decreased 2% YoY, with streaming revenue down 1.9%. However, excluding certain one-time items, Recorded Music streaming revenue would have increased 1.5%, or 2.6% in constant currency.
CEO Robert Kyncl commented on the results, stating, "This quarter, we saw success with new stars, global superstars, longtime legends, and irreplaceable catalog. In our ongoing effort to both grow the pie and grow our share of the pie, we are increasing our A&R spend, acquiring valuable catalogs, and striking important agreements with streaming services."
The company reported an increase in operating cash flow of 13% to $332 million, with a conversion rate of 91%. Warner Music Group reaffirmed its full-year guidance for Recorded Music subscription streaming revenue and operating cash flow conversion.
On Thursday, Warner Music and Spotify (NYSE:SPOT) separately announced that they have entered into a new, multi-year deal that spans both Recorded Music and Music Publishing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.