Warner Music Group (WMG) reported modest streaming revenue growth in Q3 2024, with overall streaming revenue increasing by 1% year-over-year to $1.05 billion. However, total digital revenue experienced a slight decline of 0.2%.

Key Financial Highlights:

• Recorded subscription revenue: Up 5% YoY to $645 million
• Ad-supported revenue: Down 5% YoY to $221 million
• Publishing streaming revenue: Declined 4% YoY to $182 million
• Physical sales (vinyl and CDs): Increased from $130M to $134M

12-Month Performance (ending September 30th):

• Recorded subscription revenue: Up 8% YoY to $2.54 billion
• Ad-supported revenue: Up 3% YoY to $901 million
• Publishing streaming revenue: Up 15% YoY to $752 million
• U.S. recorded revenue: Up 1% YoY to $2.21 billion
• International recorded revenue: Up 9% YoY to $3.01 billion

Future Strategy: CEO Robert Kyncl outlined plans to boost revenue through:

• Wholesale price increases in streaming agreements
• Superfan initiatives
• Reducing discounts on family plans
• Expanding into emerging markets
• Capitalizing on low streaming penetration in mature markets

Market Response: WMG stock declined 9.24% to $30.56 per share following the earnings announcement, despite the announcement of a $100 million buyback program.

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