Innovative K-Pop Label MODHAUS Nets $15 Million Investment Before New Boy Band https://t.co/85fHOVy5Z0 https://t.co/85fHOVy5Z0 ...

Group 1: Strategic Collaboration - KUKE Music and People's Music Publishing House have engaged in discussions to enhance global music collaboration and promote young Chinese musicians, resulting in multiple strategic agreements [1][2][4] - The partnership aims to build a digital music ecosystem by collaborating with platforms like Huawei Music and CMG Cloud Listening, focusing on integrated music data solutions and intelligent distribution models [3][4] Group 2: Young Musicians Support Program - The "Young Chinese Musicians Support Program" has been launched to provide comprehensive support for emerging artists, including album production, global distribution, and performance opportunities [2] - The initiative aims to identify promising talents and advance the heritage and innovation of Chinese music culture [2] Group 3: Future Vision and Industry Advancement - Both parties plan to hold regular progress meetings to implement cooperation details and deepen collaboration in areas such as music education and AI-driven copyright management [4] - The collaboration is expected to unlock new market opportunities and deliver premium Chinese music to global audiences [4] Group 4: Company Background - KUKE Music is recognized as China's premier classical music service platform, with extensive classical content licenses and a commitment to building a music ecosystem through copyright operations and digital distribution [5] - People's Music Publishing House, established in 1954, is the largest national professional music publishing authority in China, focusing on music publication and cultural exchange [6]

Financial Data and Key Metrics Changes - Total revenue increased by 7%, with adjusted OIBDA rising by 16% and a margin of 22.1%, reflecting a 170 basis point increase year-over-year [27] - Adjusted for notable items, total revenue grew by 8% and adjusted OIBDA increased by 17%, maintaining a margin of 21.8% [27] - Operating cash flow decreased to $46 million from $188 million in the prior year quarter, with free cash flow dropping to $7 million from $160 million [30][31] Business Line Data and Key Metrics Changes - Recorded music revenue increased by 6% or 8% on an adjusted basis, driven by growth in streaming, licensing, and artist services [28] - Recorded music streaming revenue grew by 3%, with subscription growth at 4% and ad-supported decline at 2% [28] - Music publishing revenue increased by 9%, driven by growth across performance, mechanical, digital, and sync revenue [28] Market Data and Key Metrics Changes - Recorded music market share in the U.S. increased by roughly one percentage point year-over-year, indicating growth in key regions [6][29] - The company is seeing positive improvements globally across EMEA, APAC, and LatAm markets [29] Company Strategy and Development Direction - The company is focused on three strategic priorities: growing market share, increasing the value of music, and improving efficiency [5][11] - A $1.2 billion joint venture with Bain Capital was announced to accelerate M&A activity and expand catalog acquisitions [11][25] - A strategic reorganization plan was introduced to generate $300 million in cost savings, aimed at future-proofing the company and unlocking growth [14][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance in charts and market share gains [5][33] - The outlook for 2026 and beyond is promising, with expectations for financial performance to reflect the success of artists and songwriters [33] - Management emphasized the importance of protecting artists' rights and adapting to the evolving landscape of AI in the music industry [12][13] Other Important Information - The company is committed to returning capital to shareholders, with a $100 million buyback authorization and a 6% increase in quarterly dividends [26] - The company has made significant investments in technology and infrastructure to enhance operational efficiency and artist support [17][18] Q&A Session Summary Question: Strategy changes and resource allocation - Management highlighted the importance of freeing up capital through reorganization to sustain future growth and emphasized the focus on high-potential markets [36][38] Question: Subscription streaming growth and cash conversion - Management expressed confidence in future streaming performance, citing healthy industry dynamics and the impact of recent DSP renewals [45][50][51] - Cash conversion remains a priority, with a target of 50% to 60% [47][48] Question: Success in breaking new stars and catalog acquisitions - Management attributed success to strong artist development and a skilled team, emphasizing the importance of global infrastructure [56][58] - The joint venture with Bain is seen as a critical component for accelerating catalog acquisitions [61][62] Question: Cost savings program and organizational changes - The cost savings program aims to create a balanced organization that drives growth while delivering savings [66][70] - Management is focused on investing in key markets and enhancing marketing tools to discover new talent [69][70] Question: Ad-supported streaming trends - Management noted growth in the core DSP ad business but acknowledged challenges in the short-form video content sector [78][82] Question: Super premium experience and interactive music - Management is in discussions with partners to evolve the super premium experience, recognizing the potential for interactivity in music [86][90] Question: Insights from gaming industry experience - Management highlighted the opportunity to offer more premium products and the importance of execution in capturing market potential [94][96]

Financial Data and Key Metrics Changes - Total revenue increased by 7%, with adjusted OIBDA rising by 16% and a margin of 22.1%, reflecting a 170 basis point increase year-over-year [28][30] - Adjusted for notable items, total revenue grew by 8% and adjusted OIBDA increased by 17% with a margin of 21.8%, also a 170 basis point increase year-over-year [28][30] - Operating cash flow decreased to $46 million from $188 million in the prior year quarter, with free cash flow dropping to $7 million from $160 million [31][32] Business Line Data and Key Metrics Changes - Recorded music revenue increased by 6% or 8% on an adjusted basis, driven by growth in streaming, licensing, and artist services [28][29] - Recorded music streaming revenue grew by 3%, with subscription growth at 4% and ad-supported decline at 2% [28][29] - Music publishing revenue increased by 9%, driven by growth across performance, mechanical, digital, and sync revenue [29] Market Data and Key Metrics Changes - Recorded music market share in the U.S. increased by approximately one percentage point year-over-year, according to Luminate data [7][30] - Positive improvements were noted globally across EMEA, APAC, and LatAm markets [30] Company Strategy and Development Direction - The company is focused on three strategic priorities: growing market share, increasing the value of music, and improving efficiency [6][13] - A $1.2 billion joint venture with Bain Capital was announced to enhance M&A activities and expand catalog acquisitions [13][25] - A strategic reorganization plan was introduced to generate $300 million in cost savings, aimed at future-proofing the company and unlocking growth [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance from artists and a healthy industry environment [33][34] - The company anticipates that financial performance will reflect the success of its artists and songwriters as it moves past tough comparables [33][34] - There is a commitment to revenue acceleration and margin expansion through cost savings and strategic investments [34] Other Important Information - The company is embracing AI to benefit artists and songwriters while also protecting their rights in the context of generative AI [14][15] - A new app, WMG Pulse, was launched to provide artists with insights into their streaming and audience data [42] Q&A Session Summary Question: Strategy changes and generative AI - Management highlighted the importance of reallocating resources for growth while also focusing on efficiency through a strategic reorganization [40][43] Question: Subscription streaming growth and future performance - Management expressed confidence in future performance, citing healthy industry dynamics and the impact of recent DSP renewals [53][55] Question: Success in breaking new stars and sustainability - Management attributed success to investments in artist development and a strong team, emphasizing the importance of global infrastructure and local expertise [59][61] Question: Cost savings program and organizational changes - The organization is designed to balance local expertise with global scale, focusing on key markets and driving cost savings [70][72] Question: Ad-supported streaming trends - Management noted growth in the core DSP ad business but acknowledged challenges in the short-form video content sector [82][83]

Financial Performance - Total revenue increased by 6%[12] - Recorded music (RM) streaming revenue increased by 8%[12] - Adjusted OIBDA increased by 16%[13] - Adjusted OIBDA margin increased by 170 basis points[13] - Operating cash flow (OCF)/Adjusted OIBDA conversion was 3%[12] Strategic Initiatives - A strategic restructuring plan is expected to deliver $300 million in annualized run-rate savings by the end of fiscal 2027[19] - Launched a joint venture with Bain Capital to invest up to $1.2 billion in music catalogs[19] Debt Maturity - Debt maturing in 2026 amounts to $535 million[16] - Debt maturing in 2028 amounts to $2.617 billion[16]

Core Insights - Lo Ting-Fai has been appointed as President of Warner Music APAC, effective August 11, 2025, and will report to CEO Robert Kyncl [1][2] - Lofai's previous experience includes CEO of MakerVille and COO of Viu, showcasing his background in content creation and digital streaming [2] - Warner Music Group aims to enhance its presence in the Asia-Pacific region, focusing on artist development and market share growth [2][4] Company Overview - Warner Music Group operates in over 70 countries and includes a diverse range of renowned labels and a music publishing arm with over one million copyrights [4] - The company is committed to supporting independent artists and enhancing its services through its artist services division, WMX [4]

Financial Data and Key Metrics Changes - Sales of continuing operations for Q1 increased by 2% year-on-year to JPY 2,621.6 billion, while operating income surged by 36% to JPY 340 billion, both record highs for the first quarter [3] - Net income rose by 23% to JPY 259 billion [4] - The full-year sales forecast remains unchanged at JPY 11,700 billion, but operating income and net income forecasts were revised upward by 4% to JPY 1,330 billion and JPY 970 billion, respectively [4] Business Segment Performance - **Gaming and Network Services (GN and S)**: Q1 sales increased by 8% year-on-year to JPY 936.5 billion, driven by higher third-party software sales. Operating income increased approximately 2.3 times year-on-year to JPY 148 billion [7][8] - **Music Segment**: Q1 sales rose by 5% year-on-year to JPY 465.3 billion, with operating income increasing by 8% to JPY 92.8 billion [11] - **Pictures Segment**: Q1 sales decreased by 3% year-on-year to JPY 327.1 billion, but operating income increased by 65% to JPY 18.7 billion [14] - **Electronics Segment (ET and S)**: Q1 sales fell by 11% year-on-year to JPY 534.3 billion, with operating income decreasing by 33% to JPY 43.1 billion [16] - **Imaging and Sensing Solutions (I and SS)**: Q1 sales increased by 15% year-on-year to JPY 408.2 billion, with operating income rising by 48% to JPY 54.3 billion [19] Market Data and Key Metrics Changes - Monthly active users for PlayStation increased by 6% year-on-year to 123 million [7] - Content and service revenue is expected to grow approximately 50% on a U.S. dollar basis compared to the previous fiscal year [10] - The smartphone market is gradually recovering, with mobile sensor sales growing steadily [20] Company Strategy and Industry Competition - The company plans to continue diversifying production locations to mitigate tariff impacts, with an estimated impact of JPY 70 billion on operating income due to tariffs [6] - A strategic partnership with Bandai Namco aims to enhance collaboration in anime and gaming, focusing on co-creating new IP and marketing [16][56] - The company is shifting from hardware-centric to community-based engagement in gaming, which is expected to stabilize profitability [40] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. economy is slightly decelerating but expects to avoid rapid deterioration, with personal consumption showing signs of recovery [51] - The company anticipates that uncertainties, such as additional tariffs, will have a greater impact from Q2 onwards, prompting a cautious approach to business operations [22][84] Other Important Information - The company plans to submit the final application for the listing of Sony Financial Group on the Tokyo Stock Exchange on August 8 [28] - The financial services segment reported an adjusted net income increase to JPY 23 billion, primarily due to improved loss ratios [24] Q&A Session Summary Question: Can you explain the decline in tariff outlook from JPY 100 billion to JPY 70 billion? - The decline is due to strategic inventory management and postponements, resulting in a lower impact than initially expected [32][33] Question: What is the risk of a 100% tariff on semiconductors? - The company relies on officially announced tariff rates and will evaluate the impact as the situation evolves [34] Question: How are the box office performances of Demon Slayer and National Treasure evaluated? - Both titles have exceeded expectations, but their overall impact on revenue is not significant [38] Question: What measures are in place to mitigate risks from U.S. semiconductor production shifts? - The company does not have semiconductor production facilities in the U.S. and will focus on maintaining product competitiveness [47][48] Question: How is the company addressing the Xperia smartphone defect? - The company has completed countermeasures and is committed to improving quality management [44] Question: What is the expected timeline for results from the partnership with Bandai Namco? - Immediate collaborations are expected within a year, with longer-term collaborations being assessed regularly [56]

Financial Data and Key Metrics Changes - Sales of continuing operations for Q1 increased by 2% year-on-year to JPY 2,621.6 billion, while operating income surged by 36% to JPY 340 billion, both record highs for the first quarter [3][4] - Net income rose by 23% to JPY 259 billion [4] - Full year sales forecast remains unchanged at JPY 11,700 billion, while operating income forecast was revised upward by 4% to JPY 1,330 billion and net income forecast was also increased by 4% to JPY 970 billion [4] Business Segment Performance - **Gaming and Network Services (GN and S)**: Q1 sales increased by 8% year-on-year to JPY 936.5 billion, driven by higher third-party software sales. Operating income increased approximately 2.3 times year-on-year to JPY 148 billion [7][8] - **Music Segment**: Q1 sales rose by 5% year-on-year to JPY 465.3 billion, primarily due to higher streaming service revenue. Operating income increased by 8% to JPY 92.8 billion [12][13] - **Pictures Segment**: Q1 sales decreased by 3% year-on-year to JPY 327.1 billion, but operating income increased by 65% to JPY 18.7 billion, driven by higher television production deliveries [15] - **Electronics and Technology Solutions (ET and S)**: Q1 sales decreased by 11% year-on-year to JPY 534.3 billion, with operating income down 33% to JPY 43.1 billion due to lower TV unit sales [17][18] - **Imaging and Sensing Solutions (I and SS)**: Q1 sales increased by 15% year-on-year to JPY 408.2 billion, with operating income up 48% to JPY 54.3 billion, driven by increased shipments of sensors [20][21] Market Data and Key Metrics Changes - Monthly active users for PlayStation increased by 6% year-on-year to 123 million [7] - Content and service revenue is expected to grow approximately 50% on a U.S. dollar basis in the current fiscal year compared to the previous fiscal year [11] - The U.S. economy is slightly decelerating, but personal consumption is showing signs of recovery [54] Company Strategy and Industry Competition - The company plans to continue diversifying production locations to mitigate tariff impacts, with expectations to complete measures by the end of the first half of the fiscal year [6][23] - A strategic partnership with Bandai Namco aims to enhance collaboration in anime and gaming, focusing on co-creating new IP and strengthening marketing [17][58] - The company is shifting its business portfolio towards entertainment creation, with a focus on community engagement in gaming and increased investment in music catalog acquisitions [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of additional U.S. tariffs, estimating an operating income impact of approximately JPY 70 billion for FY 2025 [6][36] - The company anticipates that uncertainties in the business environment will have a greater impact from FY 2025 Q2 onwards, prompting a focus on risk management [23][88] - Management remains optimistic about the growth potential in the gaming and music segments, despite some challenges in the electronics business [4][12][54] Other Important Information - The company plans to submit the final application for the listing of Sony Financial Group on the Tokyo Stock Exchange on August 8 [30] - The company aims to strengthen its financial foundation by accumulating economic value-based capital through new insurance contracts and risk reduction efforts [28] Q&A Session Summary Question: Can you explain the decline in tariff outlook from JPY 100 billion to JPY 70 billion? - Management explained that the decline is due to strategic inventory management and lower-than-expected impacts from tariffs on various segments [34][35] Question: What is the risk if the U.S. imposes a 100% tariff on semiconductors? - Management stated that the forecast is based on officially announced tariff rates and emphasized that direct exports of semiconductor components to the U.S. are limited [36][37] Question: How are the box office performances of Demon Slayer and National Treasure evaluated? - Management noted that both titles have performed well, with Demon Slayer meeting expectations and National Treasure significantly outperforming initial estimates, though the overall revenue impact is limited [39][40] Question: What measures are being taken to mitigate risks related to semiconductor production? - Management acknowledged the risks but emphasized that they do not have semiconductor production facilities in the U.S. and are focused on maintaining product competitiveness [49][50] Question: What is the current situation regarding the U.S. economy and its impact on performance forecasts? - Management indicated a slight deceleration in the U.S. economy but noted that the entertainment business is less impacted by economic fluctuations [54][55] Question: What is the timeline for seeing results from the partnership with Bandai Namco? - Management mentioned that while specific timelines are difficult to predict, they expect immediate collaborations and longer-term benefits from the partnership [58][59]

Financial Performance - Q1 FY2025 Results (Continuing Operations) - Sales increased by 563 billion yen (+2%) year-on-year to 26216 billion yen, with an approximately 8% increase on a constant currency basis[6, 8] - Operating income increased by 908 billion yen (+36%) year-on-year to 3400 billion yen, with operating income margin at 130%, a 33 percentage point increase[6] - Net income attributable to Sony Group Corporation's stockholders increased by 489 billion yen (+23%) to 2590 billion yen[6] Segment Performance - Q1 FY2025 - Game & Network Services (G&NS) sales increased by 716 billion yen (+8%) to 9365 billion yen, and operating income increased by 827 billion yen (+127%) to 1480 billion yen[9, 22] - Music sales increased by 233 billion yen (+5%) to 4653 billion yen, and operating income increased by 69 billion yen (+8%) to 928 billion yen[9, 26] - Pictures sales decreased by 102 billion yen (-3%) to 3271 billion yen, but operating income increased by 74 billion yen (+65%) [9, 30] - Entertainment, Technology & Services (ET&S) sales decreased by 667 billion yen (-11%) to 5343 billion yen, and operating income decreased by 209 billion yen (-33%) to 431 billion yen[9, 39] - Imaging & Sensing Solutions (I&SS) sales increased by 547 billion yen (+15%) to 4082 billion yen, and operating income increased by 176 billion yen (+48%) to 543 billion yen[9, 44, 47] FY2025 Forecast (Continuing Operations) - Sales forecast remains unchanged at 117 trillion yen[10, 16] - Operating income forecast increased by 50 billion yen (+4%) to 133 trillion yen after considering a 70 billion yen estimated tariff impact[10, 11, 16] - Net income attributable to Sony Group Corporation's stockholders forecast increased by 40 billion yen (+4%) to 970 billion yen[10, 15] Spin-off of Financial Services Business - Sony plans to execute a partial spin-off of Sony Financial Group Inc (SFGI) in October 2025, classifying the Financial Services business as a discontinued operation from Q1 FY25[3, 4] - A considerable one-time loss will be recorded in the consolidated statements of income at the time of the execution of the Spin-off, but there will be no impact on operating income and net income from continuing operations[52]

[Music] Hi everyone. Um it's lovely to talk on the subject of artists. An artist's life challenges and the solution is important to understand the entire perspective of an artist.What is an artist. Let me tell you an artist is a very very important person in all our lives and therefore it is important that we all handle this item or this commodity with kids gloves. It's very important because as I always say an artist is nothing but God.He's not God. Let's all remember that. We always in our daily talks, we ...