NEW YORK (CelebrityAccess) — Warner Music Group reported the financial result for the third fiscal quarter of 2025, with the company swinging to a net loss during the reporting period, respite revenue gains.
According to WMG, revenue for the quarter rose 8.7% (7.0% in constant currency), with digital revenue up 5.3% and streaming revenue up 4.0%, bolstered by strong chart performances and new artists.
Adjusted OIBDA for the quarter increased 18.0% to $373 million, with margin improving to 22.1% (up 1.8 pts), which WMG attributed to the results of cost savings and restructuring initiatives as well as acquisitions.
At the same time, O0perating income fell 18.4% to $169 million, largely due to $68 million in restructuring/impairment charges, and CFO transition costs.
For Q3, WMG reported a net loss of $16 million (vs. $141 million profit last year) which the label group attributed to foreign exchange losses, hedging activity, and higher expenses.
Segment Highlights:
Recorded Music
- Revenue up 8.2% (6.4% constant currency); strong growth in licensing (+23.3%) and artist services (+22.6%), partially offset by declines in physical sales and the end of a BMG distribution deal.
- Streaming revenue grew 3.7% (2.6% constant currency), with subscription revenue up 5.3%, but ad-supported revenue down 0.9%.
- Adjusted OIBDA rose 14.2% to $321 million; margin at 23.7%.
- Top-selling acts during the reporting period included BAEKHYUN, ROSÉ, Bruno Mars, Grateful Dead, and Teddy Swims.
Music Publishing
- Revenue grew by 10.2% (9.4% constant currency), with gains across all revenue streams.
- Streaming revenue rose 5.2%, boosted by renewals with key DSP partners.
- Adjusted OIBDA grew 21.5% to $96 million; margin rose to 28.6%.
“This quarter we delivered massive chart hits, breakthrough stars, strong revenue growth, and market share gains…all of which show our strategy is working,” said Robert Kyncl, CEO, Warner Music Group. “As we continue to evolve our company, we’re focusing on the artists, songwriters, and markets with the greatest potential, while expanding our iconic catalog, and building the dynamic teams and tools that will help our talent have the biggest global impact.”
“Our strong performance this quarter reflects our commitment to investing in great music, driving greater efficiency, and creating long-term value for our artists, songwriters, and shareholders,” said Armin Zerza, CFO, Warner Music Group. “We’re focused on accelerating growth in our core business, expanding margins, and deploying capital in ways that strengthen our creative and financial impact.”
