Warner Music Group reported mixed financial results for Q4 2024, with overall revenue declining 5% year-over-year to $1.67 billion. Key challenges emerged in the U.S. market, where recorded music revenue fell 15% to $532 million.

Key Financial Highlights:

• Recorded music revenue: $1.35 billion (down 7% YoY)
• Subscription streaming revenue: $631 million (down 2% YoY)
• Ad-supported streaming revenue: $223 million (down 8% YoY)
• Physical revenue: $166 million (up 7.8% YoY)
• Publishing revenue (Warner Chappell): $323 million (up 6% YoY)

The company attributes the revenue decline to several factors:

• BMG's ADA split ($32 million impact)
• Previous year's digital platform licensing renewal ($30 million)
• Prior catalog licensing extension ($75 million)

Excluding these one-time factors, WMG reports:

• Overall revenue growth of 3.4% YoY
• Streaming revenue growth of 1.5% YoY (excluding licensing impacts)

International Performance:

• Non-U.S. recorded revenue remained stable at $813 million
• Publishing revenue outside U.S. grew 15% YoY to $150 million

Notable Developments:

• New licensing agreement with Spotify
• Acquisition of controlling stake in Tempo Music
• CEO Robert Kyncl downplayed concerns about TikTok's impact on revenue

WMG stock (NASDAQ: WMG) closed at $31.75 per share, down approximately 1% following the earnings announcement.

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