FISCAL Q2 2025 Earnings Snapshot © Warner Music Group 2025 Confidential 1 Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures. We provide reconciliations to these non-GAAP financial measures to the most directly comparable GAAP financial measures in our earnings press release, which can be found on our website at investors.wmg.com. © Warner Music Group 2025 Confidential This presentation is a supplement to, and should be read in conjunction with, Warner Music Group's e ...

Core Insights - Warner Music Group Corp. reported a total revenue of $1,484 million for Q2 2025, a decrease of 1% compared to $1,494 million in Q2 2024 [3][24] - The company experienced a significant decline in net income, which fell 63% to $36 million from $96 million in the prior-year quarter [4][8] - Operating income increased by 41% to $168 million, driven by cost savings and a decrease in restructuring charges [6][14] Financial Performance - Total revenue decreased by 1% (or increased by 1.2% in constant currency) [4] - Recorded Music revenue was down 1% to $1,175 million, while Music Publishing revenue increased by 1% to $310 million [3][16] - Adjusted OIBDA decreased by 3% to $303 million, with a margin of 20.4% [7][31] Revenue Breakdown - Digital revenue decreased by 0.8% to $841 million, with streaming revenue down 0.4% [4][28] - Physical revenue increased by 0.9% to $112 million, driven by new releases [13][17] - Licensing revenue increased by 1% to $105 million, primarily due to deals in Japan and the U.S. [13][17] Cash Flow and Debt - Cash provided by operating activities increased to $69 million from a use of $31 million in the prior-year quarter [11] - Free Cash Flow improved to $33 million from a use of $57 million in the prior-year quarter [11] - As of March 31, 2025, the company reported a cash balance of $637 million and total debt of $4.292 billion [10][26] Strategic Initiatives - The CEO highlighted that the company's strategy is beginning to yield results, with an expanding market share in the U.S. [2] - Cost savings plans are on track, and reinvestment initiatives are accelerating [4][5] - The company aims to replicate its successful strategy across other labels and geographies to drive growth and profitability [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-32502 Warner Music Group Corp. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 13-4 ...

Revenue Performance - Total revenue for Q2 2025 decreased by 1% to $1,484 million, but increased by 1% in constant currency[4] - Total revenue for the three months ended March 31, 2025, was $1,484 million, a decrease of 1% from $1,494 million in the prior year[25] - Total digital revenue for the three months ended March 31, 2025, was $1,027 million, a decrease of 1% from $1,035 million in the same period in 2024[28] - U.S. recorded music revenue decreased by 2% to $497 million from $508 million year-over-year[35] - International recorded music revenue increased by 3% to $678 million compared to $681 million in the previous year[35] Income and Profitability - Net income fell 63% to $36 million compared to $96 million in the prior-year quarter[4] - Adjusted OIBDA decreased by 3% to $303 million, with a margin of 20.4%[4][8] - Adjusted OIBDA for the three months ended March 31, 2025, was $303 million, down 3% from $312 million in the same period in 2024[30] - The total net income for the six months ended March 31, 2025, was $277 million, a decrease of 4% from $289 million in the same period in 2024[30] Operating Income - Operating income increased by 41% to $168 million from $119 million in the prior-year quarter[4] - Operating income for Recorded Music increased by 51% to $203 million, with an operating margin of 17.3%[15] - Operating income decreased by 24.6% to $52 million from $69 million in the prior-year quarter, with an operating margin decline of 5.7 percentage points to 16.8%[19] - The operating income margin for the three months ended March 31, 2025, improved to 11.3%, compared to 8.0% in the same period in 2024[30] Cash Flow and Liquidity - Year-to-date operating cash flow and free cash flow increased by 53% and 59%, respectively[4] - Cash provided by operating activities increased to $69 million from a use of $31 million in the prior-year quarter[12] - For the six months ended March 31, 2025, net cash provided by operating activities was $401 million, compared to $262 million in the same period of 2024[39] - Free Cash Flow for the three months ended March 31, 2025, was $33 million, a significant improvement from a negative $57 million in the same period of 2024[39] Debt and Assets - Total debt stood at $4.292 billion, with net debt of $3.655 billion as of March 31, 2025[11] - Total assets increased by 5% to $9,568 million as of March 31, 2025, from $9,155 million on September 30, 2024[27] - Total liabilities rose by 4% to $8,778 million as of March 31, 2025, compared to $8,480 million on September 30, 2024[27] Digital and Streaming Revenue - Digital revenue decreased by 0.8%, while streaming revenue decreased by 0.3%[6][14] - Digital revenue rose by 0.5% to $188 million, while streaming revenue remained flat year-over-year[18] - Total digital revenue for recorded music was $1,714 million, a 1% decrease from $1,756 million year-over-year[36] Music Publishing - Music Publishing revenue increased by 1.3% to $310 million for the three months ended March 31, 2025, compared to $306 million in the prior year[18] - Music publishing revenue increased by 3% to $310 million compared to $306 million in the previous year[36] - Music Publishing Adjusted OIBDA for the three months ended March 31, 2025, was $85 million, an increase of 4% from $82 million in the same period in 2024[31] Capital Expenditures - Capital expenditures for the three months ended March 31, 2025, were $36 million, compared to $26 million in the same period of 2024[39]

Management Changes - OPPO's China President Liu Bo has resigned to participate in an executive training program, with Senior Vice President Duan Yaohui taking over responsibilities for the Chinese market [2][4] - Zhao Ming has stepped down as Chairman of Beijing Honor Terminal Co., Ltd. and Xi'an Honor Terminal Co., Ltd., with Fang Fei and Liu Yang taking over the roles respectively [5] - Lei Jun has transitioned from Executive Director to Director at Xiaomi Home Business Co., Ltd., with new business areas added [6] - Xiaomi's CMO Xu Fei has been appointed as the General Manager of the International Market Department [7] - Ant Group's OceanBase has appointed CTO Yang Chuanhui as the head of AI strategy [8] - Zhongyou Technology has appointed Wang Chunye as Co-CEO, effective April 9, 2025 [9] - Apple VP Mark Rogers, responsible for enterprise sales and Western European markets, plans to leave the company after 27 years [10] - Apple is adjusting the responsibilities of AI head John Giannandrea, who will no longer manage the robotics department [11] - Apple has restructured its global affairs and music departments, including changes in leadership [12] - Intel's new CEO Pat Gelsinger is streamlining the leadership team, promoting Sachin Katti to CTO and AI head [13] - Meta Platforms is expanding its board to 15 members with the addition of Dina Powell McCormick and Patrick Collison [14] - OpenAI CEO Sam Altman is resigning from the chairmanship of Oklo to avoid conflicts of interest [15] - NXP has announced the retirement of CEO Kurt Sievers, with Rafael Sotomayor set to take over [16] - Discord has appointed former Activision Blizzard executive Humam Sakhnini as CEO [17] - Warner Music Group has appointed Armin Zerza as CFO, effective May 5 [20] - Quantum Computing Inc. CEO William McGann has expressed intent to resign, with Yuping Huang appointed as interim CEO [21] - DXC Technology has appointed William Pieroni as the global leader for insurance software and business process services [24]

Core Viewpoint - Warner Music Group Corp. (WMG) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with a consensus outlook suggesting a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.28 per share, reflecting a year-over-year increase of +55.6%, with revenues projected at $1.51 billion, up 0.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 2.2% lower over the last 30 days, indicating a reassessment by analysts of their initial estimates [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +9.09%, although the stock carries a Zacks Rank of 4, complicating predictions of an earnings beat [10][11]. Historical Performance - Warner Music Group has a history of beating consensus EPS estimates, having exceeded expectations three out of the last four quarters, including a +32.35% surprise in the last reported quarter [12][13]. Conclusion - While the company does not appear to be a compelling earnings-beat candidate, it is essential for investors to consider other factors influencing stock performance ahead of the earnings release [16].

Core Insights - Warner Music Group (WMG) is launching a new joint venture label named 5 Junction, aimed at discovering and nurturing U.S.-based artists of South Asian heritage and amplifying the success of existing South Asian artists within WMG [1][2] - The initiative is led by Anjula Acharia, who emphasizes the importance of representation and the global power of South Asian stories in music [2][3] - WMG's India team has expanded its presence in South Asia, attracting notable regional talent with global potential, such as Diljit Dosanjh and King [2][3] Group 1 - 5 Junction will collaborate closely with Warner Records in Los Angeles, focusing on the intersection of culture and commerce to enhance the visibility of South Asian music in the U.S. [1][2] - Robert Kyncl, CEO of WMG, highlights the early recognition of the global potential in South Asian music and the strategic positioning to capitalize on this market [2][3] - The label aims to amplify South Asian music, which has a significant diaspora and cultural rhythm, to thrive in the U.S. music market [2][3] Group 2 - Anjula Acharia is recognized for her role in launching Priyanka Chopra Jonas' career and connecting global talent with opportunities [3] - Acharia's previous work includes introducing Western superstars to South Asian audiences, showcasing her expertise in cross-cultural collaborations [3] - The partnership with 91 North Records, a joint venture between Warner Music India and Warner Music Canada, will further enhance the fusion of South Asian music in Canada [2]

Accomplished Leader from Activision Blizzard and Procter & Gamble NEW YORK, April 14, 2025 /PRNewswire/ -- Warner Music Group Corp. (Nasdaq: WMG) today announced that Armin Zerza is joining the company as Executive Vice President and Chief Financial Officer, effective May 5, reporting to CEO Robert Kyncl. Zerza brings extensive global financial, commercial, and operational leadership experience, most recently serving as CFO of Activision Blizzard, while it was traded on the NASDAQ stock exchange. At the sam ...

Financial Results Announcement - Warner Music Group Corp. will release its financial results for the second quarter ended March 31, 2025, on May 8, 2025 [1] - An earnings conference call is scheduled for the same day at 8:30 a.m. ET [1] Conference Call Access - Registration is required to access the conference call, and participants will receive unique dial-in details via email [2] - It is recommended to join the call 10 minutes early or to use the webcast option if no questions are anticipated [2] - A replay of the conference call will be available on the company's website [2] Company Overview - Warner Music Group operates in over 70 countries and includes a variety of renowned labels and a music publishing arm with a catalog of over one million copyrights [3] - The company supports the independent community through ADA and has an artist services division called WMX [3]

Core Insights - The Harmony Program raised nearly $800,000 at its annual gala to support music education in under-served communities in New York City [1] - Warner Music Group (WMG) has been a partner of the Harmony Program since 2015, providing financial support and mentorship to students [2][4] - Josh Groban, a Grammy-nominated artist, emphasized the importance of arts education in fostering understanding and collaboration among young people [2] Company Contributions - WMG's President of Global Catalog, Kevin Gore, highlighted the significance of music education in building community and encouraging artistic expression [2] - The partnership between WMG and the Harmony Program has included career mentorship, industry internships, and collaborative performances with renowned artists [2] - WMG operates in over 70 countries and includes a diverse range of labels and music publishing arms, showcasing its extensive influence in the music industry [3] Harmony Program Overview - The Harmony Program provides free instruments, intensive music instruction, and orchestral training to children from under-served communities [4] - The organization aims to promote self-confidence, creativity, social development, and academic success among its students [4] - The program also addresses the shortage of well-trained music teachers by preparing accomplished musicians to teach in public schools and community centers [4]