Warner Music Group has reported a revenue dip for Q1 2025, when recorded subscription streaming revenue grew modestly and its ad-supported counterpart fell 5% YoY. Photo Credit: WMG
Warner Music Group (WMG) has reported another quarterly revenue slip – this time for 2025’s opening three months, when the major label suffered a “market share loss in China.”
WMG posted its financials for 2025’s first quarter (the fiscal second quarter) this morning, pointing to about $1.48 billion in overall revenue. That represents a small decrease from the same period in 2024 and reflects dips in several categories.
To be sure, U.S. recorded revenue ($497 million, down 2% YoY in constant currency), stateside publishing revenue ($161 million, down 5% YoY), and international recorded revenue ($678 million, down slightly YoY) all fell during Q1 2025, Warner Music relayed.
International publishing revenue rode a double-digit YoY boost to hit $149 million, however, and physical sales grew almost 1% YoY to $112 million amid bumps in the U.S. and Japan.
Meanwhile, the Tempo Music owner acknowledged a minor decline in recorded digital revenue to $841 million for 2025’s opening quarter. Behind this development, recorded streaming subscription revenue ($622 million) is said to have improved by 1.1% YoY, though its ad-supported counterpart ($203 million) decreased by almost 5%.
More interesting than the slips themselves is the company’s explanation for the wider trend.
During the corresponding earnings call, execs cited a lighter Q1 2025 release schedule, difficult YoY comparisons, a soft ad market, presumably advantageous DSP renewals that are still kicking in, and the aforementioned “market share loss in China.”
For reference, China’s on-demand market leader, Tencent Music, is still reporting solid growth in the core streaming category. And Universal Music previously indicated that it’d achieved double-digit subscription revenue growth in China during 2025’s first quarter.
In any event, execs opted against diving into Warner Music’s exact commercial woes in China. But CEO Robert Kyncl said he anticipates the trend will “continue for the balance of the year.” Even so, the former YouTube exec also touched on the potential for better results under a head of Asia who’s set to come aboard in about two months.
Elsewhere in the Q1 2025 report, Warner Music confirmed $36 million in net income (down from $96 million) and shed light on the exit package of former CFO Bryan Castellani.
Remaining on in an advisory capacity until September’s end, Castellani is expected to receive his base compensation, a $1.65 million severance payment (via weekly installments), a once-off $40,000 payment, an “annual target bonus” (amount to be determined), and $1 million in restricted stock units, Warner Music communicated.
These and previous stock awards will vest so long as the exec complies with a collection of “non-competition and non-solicitation covenants,” according to the text.
At the time of writing – despite wider market trends that pushed Spotify stock to a record high of $663 per share – Warner Music stock (NASDAQ: WMG) was down 7.2% at $27.92 per share.
Financials, Music Industry News
This post was originally authored and published by Dylan Smith Digital Music News via RSS Feed. Join today to get your news feed on Nationwide Report®.
