NEW YORK (CelebrityAccess) — Warner Music Group (WMG) announced its financial results for the fourth fiscal quarter and full year of 2024.
Revenue Performance
Total revenue increased by $1.63 billion (3% year-over-year) for Q4 and by 6% for the full year, reaching $6.4 billion. The results were impacted by a key digital licensing renewal and the termination of a distribution agreement with BMG.
Operating and Net Income
Operating income fell by 33% in Q4, dropping from $212 million in 2023 to $143 million this year. However, full-year operating income grew 4% to $823 million.
Net income for Q4 plunged 69%, from $154 million in 2023 to $48 million in 2024. For the full year, net income rose 9%, reaching $478 million, up from $439 million in 2023.
Segment Highlights
- Recorded Music: Revenue grew 4% in Q4 and 5% for the year, totaling $5.223 billion. Digital revenue drove growth, contributing $881 million for Q4 and $3.89 billion for the year. Physical media revenue rose modestly, from $130 million in Q4 2023 to $134 million this year, with an annual total of $519 million (up from $507 million in 2023).
- Music Publishing: Q4 revenue declined 1%, primarily due to lower digital and mechanical revenue, partially offset by higher synchronization revenue. Operating income increased to $53 million (up from $49 million in 2023), with operating margin rising to 18.0% (up from 16.4%). For the year, operating income rose to $238 million (up from $200 million), with margins improving to 19.7%. Full-year results benefited from a $14 million net gain on a divestiture.
Management Commentary
“Our performance this quarter and this year highlights our strength and adaptability in a thriving, fast-moving market,” said Robert Kyncl, CEO of WMG. “By focusing on simplicity and impact, we’re enhancing our ability to attract original artists and songwriters at all stages of their careers, growing passionate fanbases worldwide.”
“Our diverse and resilient business model, supported by strong streaming performance and cost discipline, has delivered robust cash flow,” added Bryan Castellani, CFO. “We’re excited for the opportunities ahead and look forward to delivering more culture-shaping music in 2025 and beyond.”
