Warner Music Group has revealed its fiscal third-quarter financial results for the period ended June 30, 2025.
Robert Kyncl, CEO, Warner Music Group, said on the earnings call that the major had “delivered a strong quarter marked by a reacceleration of growth” across recorded music and music publishing.
“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 Kyncl. “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."
Armin Zerza, CFO, Warner Music Group, said that the major has “zeroed in on the key markets and genres where we will meaningfully increase investment”.
“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 Zerza. “We’re focused on accelerating growth in our core business, expanding margins, and deploying capital in ways that strengthen our creative and financial impact.”
Warner has implemented a strategic restructuring programme, as well as recently announcing a joint venture with Bain Capital for the purchase of up to $1.2 billion of catalogues across recorded music and music publishing.
During the fiscal third-quarter, total revenue was up 7.0% in constant currency (all figures will be stated in constant currency) to $1.689 billion. Adjusted OIBDA increased 15.8% to $373 million. WMG reported a net loss of $16m.
Recorded Music revenue was up 6.4%, driven by increases across digital, artist services and expanded-rights and licensing revenue, partially offset by a decrease in physical revenue. Digital revenue was up 4.1% and streaming revenue was up 2.6%.
Excluding one-off factors in the prior year quarter, streaming revenue increased 5.8% and subscription revenue grew 8.5%.
Licensing revenue increased 19.4%, driven by licensing deals primarily in the UK and China, as well as the timing of copyright infringement settlements. Artist services and expanded-rights revenue increased 19.6% due to higher concert promotion revenue, primarily in France and Spain. Physical revenue decreased 4.0%.
Top sellers in the quarter included Baekhyun, Rosé, Bruno Mars, Grateful Dead and Teddy Swims.
This quarter we delivered massive chart hits, breakthrough stars, strong revenue growth and market share gains… all of which show our strategy is working
Robert Kyncl
Music publishing revenue increased 9.4%. The increase was driven by growth across digital, performance, sync and mechanical revenue. Digital revenue increased 4.6% and streaming revenue increased 4.1%, driven by the impact of digital deal renewals, primarily in the US.
Performance revenue increased 9.4%, attributable to growth from concerts, radio and live events primarily in Europe.
Sync revenue increased 28.6% due to the timing of copyright infringement settlements, higher television and commercial licensing activity, and the $3 million impact of the company’s acquisition of Tempo. Mechanical revenue increased 14.3%.
Kyncl highlighted the growth of recorded music market share in key regions, including the US, where it increased by roughly one percentage point year-on-year, according to Luminate data.
“We’re achieving these gains by delivering the biggest hits in the world today, developing artists who will be the superstars of tomorrow, and growing the popularity of our iconic catalogue,” said Kyncl.
Warner recording artists held half of the Top 10 on the Spotify Global chart for 12 weeks, and the No.1 spot for all but seven weeks of 2025.
“We’re also seeing great success from our breakout artists,” said Kyncl. “In an increasingly noisy and competitive environment, these new stars highlight WMG’s outstanding artist development capabilities.”
Breakthrough stars include Alex Warren, Sombr and Teddy Swims.
“Today’s hits will become the evergreen catalogue of the future,” added Kyncl. “Given that music over three years old represents roughly two-thirds of our recorded music streaming revenue, continued growth and revitalisation is paramount.”
Madonna has seen a 33% increase in career-wide streams in the fiscal year to date, following the release of remix album Veronica Electronica.
The 25th anniversary edition of Slipknot’s first album has helped drive an 11% increase in the band’s streams this fiscal year to date, while Fleetwood Mac’s Rumours was the only catalogue release on Luminate’s Mid-year Top Vinyl Album Sales Chart.
Kyncl also noted the benefits of streaming price increases.
“The industry is increasingly focused on price-driven growth, and we continue to see progress in aligning our contracts with streaming services with this new paradigm as we improve deal terms,” he said. “Since February, we’ve signed renewals with several major services that will provide greater certainty and visibility around our economics. We look forward to seeing the impact these deals will have in 2026 and beyond.
“In fact, you’ve seen Spotify announce price increases outside the US earlier this week, reflective of the incredible value proposition that music subscriptions present. And as we’ve mentioned, we continue to work with our DSP partners on the design and implementation of superfan tiers, which demonstrate the opportunity to better monetise fandom.”
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