Warner Music(US:WMG)2025-05-08 11:20Revenue 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]