WMG sees solid Q1 with $1.48B revenue, streaming subscriptions up year-over-year
Warner Music Group kicked off 2025 with $1.48 billion in revenue, explore how the company is navigating ad market challenges while staying focused on global growth.
Warner Music Group (WMG), one of the world’s largest music companies, has reported a steady performance in the first calendar quarter of 2025, with total revenues reaching $1.484 billion, up 1.2% year-over-year at constant currency. The results reflect continued resilience in the face of shifting consumer behaviors and a turbulent advertising environment, with strong growth in subscription-based streaming helping to offset declines elsewhere.
The company’s core recorded music subscription streaming revenues grew 3.2% YoY to $622 million, confirming the enduring strength of paid streaming services such as Spotify, Apple Music, and Amazon Music. This segment continues to serve as the financial backbone of WMG’s business and the broader industry.
However, ad-supported streaming revenue declined by 2.9% YoY, landing at $203 million. Executives attributed the softness in this area to macroeconomic factors impacting the digital advertising market, which has seen uneven recovery across different platforms and territories.
Despite these headwinds, overall digital revenue continued to represent the vast majority of WMG’s income, highlighting the company’s transformation into a fully modernized, streaming-first music powerhouse.
WMG’s Recorded Music division brought in $1.217 billion, a 2.3% YoY increase at constant currency. This growth was led by streaming gains, while physical sales and licensing also contributed. The company credited strong performances by artists such as Dua Lipa, Ed Sheeran, Zach Bryan, and Benson Boone, along with continued catalog strength.
On the Music Publishing side, Warner Chappell generated $266 million, a 3.6% decrease at constant currency. The decline was primarily due to lower performance and synchronization revenue, though mechanical and digital income remained relatively stable.
While WMG’s revenue grew modestly, its profitability presented a mixed picture:
- Operating income surged by 47.4% YoY to $168 million, aided by cost discipline and operational efficiency.
- Net income, however, fell to $36 million, compared to $96 million in Q1 2024. This decline was mainly due to a higher income tax expense and an unfavorable comparison with a prior-year tax benefit.
- Adjusted OIBDA (Operating Income Before Depreciation and Amortization), a key internal profitability metric, came in at $303 million, down 1% YoY.
Despite the largely stable financial report, investors reacted cautiously. On May 8, WMG’s share price declined by 9.12%, closing at $27.11, reflecting investor sensitivity to slowing growth and continued uncertainty in the advertising landscape.
WMG’s management reiterated their confidence in the long-term streaming model and highlighted the company’s strategic efforts to strengthen its digital tools for artists, invest in new technologies like AI-assisted music creation, and expand in high-growth international markets such as India, Brazil, and Southeast Asia.
Speaking on the earnings call, WMG CEO Robert Kyncl emphasized the importance of building a flexible, forward-looking music company:
“We’re laser-focused on unlocking value for our artists, songwriters, and shareholders. While the ad market remains challenging, our robust subscription streaming revenue and global artist development strategies are helping us maintain strong momentum.”
Looking ahead, WMG plans to deepen its partnerships with tech platforms, enhance its direct-to-consumer capabilities, and explore new formats including spatial and immersive audio. The company also hinted at upcoming initiatives to support independent artists and leverage its catalog in innovative licensing opportunities, including gaming and short-form video.