Warner Music Group reported a challenging Q4 2024, with notable declines in revenue across several key areas. The company's overall revenue decreased 5% year-over-year to $1.67 billion, while recorded music revenue fell 7% to $1.35 billion.

Key Financial Highlights:

• Subscription streaming revenue: $631 million (down 2% YoY)
• Ad-supported streaming revenue: $223 million (down 8% YoY)
• U.S. recorded music revenue: $532 million (down 15% YoY)
• International recorded music revenue: $813 million (flat YoY)
• Physical revenue: $166 million (up 7.8% YoY)
• Publishing revenue (Warner Chappell): $323 million (up 6% YoY)

Several factors contributed to the revenue decline:

• BMG's ADA split resulted in a $32 million decrease ($16M each in streaming and physical)
• Prior year benefited from a $30 million digital platform licensing renewal
• A one-time $75 million boost from a catalog licensing extension in Q4 2023

When excluding these special items, WMG's overall revenue actually increased by 3.4% YoY, with recorded music streaming revenue showing a modest 1.5% improvement.

Publishing Performance:

• U.S. publishing revenue: $173 million (up 1% YoY)
• International publishing revenue: $150 million (up 15% YoY)
• Publishing streaming revenue: $205 million (up 6% YoY)

The company also announced two significant developments:

• A new licensing agreement with Spotify
• Acquisition of a controlling stake in Tempo Music

CEO Robert Kyncl addressed concerns about TikTok's impact, stating there's "not much to worry about" regarding the platform's effect on Warner Music's bottom line. The company's stock (NASDAQ: WMG) closed at $31.75 per share, down approximately 1% following the earnings announcement.

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