Warner Music(WMG) - 2025 Q4 - Annual Results

Revenue Performance - Quarterly revenue reached an all-time high of $1,868 million, a 15% increase compared to $1,630 million in the prior year[5] - Total revenue for the full year increased by 4% to $6,707 million, with a 4.4% increase in constant currency[5] - Revenue for the three months ended September 30, 2025, increased by 15% to $1,868 million compared to $1,630 million for the same period in 2024[43] - For the three months ended September 30, 2025, total digital revenue increased by 8% to $1,152 million compared to $1,066 million for the same period in 2024[47] - For the twelve months ended September 30, 2025, total revenue was $6,707 million, a 4% increase from $6,426 million in 2024[56] Digital Revenue - Digital revenue increased by 8% to $951 million, while recorded music streaming revenue grew by 7.5%[7] - Digital revenue rose by 7.9% to $951 million, with streaming revenue up 7.5% to $1,200 million, reflecting growth in subscription revenue of 8.5%[22] - Recorded music digital revenue for the twelve months ended September 30, 2025, was $3,594 million, a 2% increase from $3,519 million in 2024[47] - Total digital revenue for the twelve months ended September 30, 2025, was $4,393 million, a 3% increase from $4,280 million in 2024[47] Income and Profitability - Net income for the quarter was $109 million, up from $48 million in the prior-year quarter, marking a significant increase of 127%[10] - Operating income for the full year decreased by 16% to $694 million compared to $823 million in the prior year[16] - Net income attributable to Warner Music Group Corp. for the three months ended September 30, 2025, was $109 million, compared to $41 million for the same period in 2024, reflecting a significant increase[44] - Net income attributable to Warner Music Group Corp. for the twelve months ended September 30, 2025, was $365 million, a decrease of 16% from $435 million in 2024[50] Cash Flow and Operating Activities - Cash provided by operating activities decreased by 24% to $231 million from $304 million in the prior-year quarter[13] - The company reported a net cash provided by operating activities of $231 million for the three months ended September 30, 2025, compared to $304 million in 2024[46] - Free cash flow for the year decreased by 16% to $539 million from $638 million in the prior year[19] - Free Cash Flow for the three months ended September 30, 2025, was $203 million, down from $271 million in the same period of 2024[60] Adjusted OIBDA - Adjusted OIBDA rose 15% to $405 million, with a margin of 21.7%[9] - Adjusted OIBDA for Recorded Music increased by 12.0% to $355 million, with a margin of 23.1%, down from 23.7% in the prior year[25] - Adjusted OIBDA for Music Publishing rose by 16.9% to $97 million, with a margin of 28.8%[33] - Adjusted OIBDA for the three months ended September 30, 2025, rose by 15% to $405 million from $353 million in 2024[50] - Adjusted OIBDA margin for Total WMG was 21.5% for the twelve months ended September 30, 2025, down from 22.3% in 2024[57] Debt and Assets - Total debt as of September 30, 2025, was $4.365 billion, with net debt of $3.833 billion[12] - Total assets increased by 7% to $9,829 million as of September 30, 2025, compared to $9,155 million in 2024[45] Artist Services and Expanded-Rights Revenue - Artist services and expanded-rights revenue surged by 67.7% to $327 million, driven by higher merchandising and concert promotion revenue[22] - Artist services and expanded-rights revenue for the three months ended September 30, 2025, surged 64% to $327 million from $195 million in the prior year[55] Restructuring and Impairments - Restructuring and impairments increased by 54% to $125 million for the three months ended September 30, 2025, compared to $81 million in 2024[43] - Restructuring and impairments for the twelve months ended September 30, 2025, increased by 32% to $234 million from $177 million in 2024[50] Licensing Revenue - Licensing revenue for Recorded Music decreased by 9.8% to $452 million, impacted by prior year licensing extensions[26]