Warner Music(US:WMG)2026-02-05 21:03Revenue Growth - Total revenue increased by 10% to $1,840 million, with Recorded Music revenue up 10% to $1,480 million and Music Publishing revenue up 12% to $362 million compared to the prior-year quarter[4] - Total revenue for Warner Music Group was $1,840 million, a 10% increase from $1,666 million in the prior year[27] - Total revenue for Warner Music Group Corp. was $1.84 billion for the three months ended December 31, 2025, representing a 7% increase from $1.67 billion in the same period of 2024[36] - Recorded Music revenue grew by 7% to $1.48 billion, while Music Publishing revenue increased by 9% to $362 million for the three months ended December 31, 2025[36] Income and Profitability - Net income decreased by 27% to $175 million, primarily due to unfavorable currency exchange impacts and a decrease in pre-tax income[9] - Net income attributable to Warner Music Group Corp. decreased by 25% to $176 million, down from $236 million in the prior year[27] - Warner Music Group Corp. reported a net income of $176 million for the three months ended December 31, 2025, a decrease of 25% compared to $236 million in the same period of 2024[32] - Operating income increased by 35% to $288 million, driven by strong operating performance and cost-saving measures[3] - Recorded Music operating income increased by 38% to $329 million, with an operating margin improvement of 4.5 percentage points to 22.2%[15] - Operating income for Music Publishing grew by 18.2% to $65 million, with an operating margin of 18.0%, up from 17.0% in the prior year[19] - The operating income margin improved to 15.7% for the three months ended December 31, 2025, compared to 12.8% in the same period of 2024[32] Cash Flow and Financial Position - Cash provided by operating activities increased by 33% to $440 million, while Free Cash Flow rose by 42% to $420 million[12] - Cash and equivalents increased by 41% to $751 million as of December 31, 2025, compared to $532 million at September 30, 2025[28] - The cash balance as of December 31, 2025, was $751 million, with total debt of $4.371 billion[11] - Free Cash Flow for the three months ended December 31, 2025, was $420 million, compared to $296 million in the same period of 2024, reflecting a significant increase[41] Digital Revenue - Digital revenue grew by 10% to $976 million, with streaming revenue up 12.4% to $1,128 million, reflecting strong subscription and ad-supported revenue growth[14] - Total digital revenue increased by 10% to $1,190 million, driven by a 12% rise in streaming revenue to $1,172 million[29] - Digital revenue within Recorded Music increased by 9% to $976 million for the three months ended December 31, 2025[36] - Digital revenue within Music Publishing rose by 3.9% to $215 million, while streaming revenue increased by 3.4% to $212 million[18] Strategic Initiatives - The company expects to drive 150 to 200 basis points of margin improvement through strategic investments and cost-saving initiatives in 2026[3] - Warner Music Group Corp. continues to focus on strategic acquisitions and investments to enhance long-term value and operational performance[39] Adjusted Metrics - Adjusted OIBDA rose by 28% to $463 million, with an adjusted OIBDA margin improvement of 3.4 percentage points to 25.2%[8] - Adjusted OIBDA increased by 28% to $463 million for the three months ended December 31, 2025, up from $363 million in the same period of 2024[32] - Adjusted OIBDA increased by 22.9% to $102 million, with an adjusted OIBDA margin of 28.2%, up from 25.7% in the prior year[20] - The Adjusted OIBDA margin also improved to 25.2% for the three months ended December 31, 2025, up from 21.8% in the same period of 2024[32] Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.19 per share, payable on March 3, 2026[21]