Warner Music Group has issued its monetary outcomes for the three months ended March 31, 2026 (calendar Q1 – the corporate’s fiscal Q2).
In response to the corporate’s fiscal Q2 (calendar Q1) outcomes, revealed at present (Might 7), WMG noticed its quarterly world company-wide revenues attain USD $1.732 billion (throughout recorded music, music publishing, and different actions).
Complete income was up 12.1% YoY at fixed forex.
Different highlights from the quarter embrace recorded music revenues up 12.7% YoY at fixed forex to $1.38 billion, and subscription streaming revenues up 12.7% YoY at fixed forex to $734 million.
“Our Q2 outcomes reveal the highly effective mixture of inventive and operational success, in addition to monetary self-discipline, offering clear proof that our strategic transformation is working,” stated Warner Music Group CEO Robert Kyncl in a observe to buyers on Thursday (Might 7).
“Anchored by our 3 strategic pillars to develop share, improve the worth of music, and enhance effectivity and effectiveness, our momentum is constructing and we’re well-positioned to proceed delivering long-term worth for our artists, songwriters, and shareholders.”
WARNER’S CALENDAR Q1 2026 IN SUMMARY (% IN CONSTANT CURRENCY):
Warner Music Group‘s general revenues have been up 12.1% YoY at fixed forex to $1.732 billion in calendar Q1 2026;
Recorded music revenues have been up 12.7% YoY at fixed forex to $1.38 billion.
Inside that determine, recorded music streaming revenues have been up 12.1% YoY at fixed forex to $961 million.
Recorded music subscription streaming revenues have been up 12.7% YoY at fixed forex to $734 million.
Music publishing revenues – at Warner Chappell Music – have been up 9.6% YoY at fixed forex to $353 million.
WMG stated its double-digit income progress was underpinned by an acceleration in recorded music streaming, pushed by per-subscriber minimal will increase and continued market share positive factors.
“Our Q2 outcomes reveal the highly effective mixture of inventive and operational success, in addition to monetary self-discipline, offering clear proof that our strategic transformation is working.
Robert Kyncl, Warner Music Group
WMG famous {that a} digital income settlement of $11 million within the prior-year quarter (the “DSP True-Up and Settlement Funds”), mixed with the continuing affect of the termination of a distribution settlement with BMG, affected its Recorded Music income.
The BMG Termination resulted in $6 million much less Recorded Music digital income in comparison with the prior-year quarter.
Excluding these things, WMG reported that its whole income was up 13.4% at fixed forex.
RECORDED MUSIC
Warner Music Group‘s recorded music revenues have been up 12.7% YoY at fixed forex to $1.38 billion.
In response to WMG, the rise was pushed by progress throughout digital, artist companies and expanded-rights and bodily income, partially offset by a slight lower in licensing income.
Excluding the DSP True-Up and Settlement Funds and the BMG Termination, Recorded Music income was up 14.2% at fixed forex.
Warner‘s recorded music streaming income (together with ad-supported and subscription) was up 12.1% YoY on a relentless forex foundation to $961 million.
Adjusted for the DSP True-Up and the BMG Termination, recorded music streaming income was up 14.4% YoY at fixed forex.
WMG additionally breaks that streaming determine down to focus on the efficiency of its subscription streaming and ad-supported streaming revenues, respectively.
The corporate’s revenues from recorded music subscription streaming reached $734 million in calendar Q1 2026, up 12.7% YoY at fixed forex.
Adjusted for the DSP True-Up and BMG Termination impacts, subscription income was up 15.4% YoY at fixed forex.
WMG stated the rise in subscription income “displays optimistic market share developments and a positive comparability towards a softer prior-year quarter”.
The quarter additionally benefited from a wave of subscription value will increase at main streaming platforms, together with Spotify‘s US Premium value hike from $11.99 to $12.99 per 30 days, which took impact in February.
WMG generated $227 million in ad-supported recorded music streaming revenues in calendar Q1 2026, up 10.2% YoY at fixed forex.
The corporate stated the rise in ad-supported income “displays a robust general advert setting within the quarter”.
That represents a reversal from the prior-year calendar Q1 interval, during which WMG‘s ad-supported recorded music streaming revenues declined 2.9% YoY at fixed forex amid what the corporate known as a “mushy general advert setting”.
Elsewhere in Recorded Music, artist companies and expanded-rights income reached $164 million, up 33.3% YoY at fixed forex, pushed, based on WMG, by increased live performance promotion income primarily in France and better merchandising income.
Bodily income elevated 18.1% YoY at fixed forex to succeed in $137 million, pushed by sturdy releases within the quarter in addition to catalog and carryover success.
Licensing income reached $104 million, down 6.3% YoY at fixed forex.
Prime sellers within the quarter included Bruno Mars, Alex Warren, sombr, Ed Sheeran and Melanie Martinez.
MUSIC PUBLISHING
Warner‘s world music publishing division – Warner Chappell Music – noticed its quarterly revenues improve by 9.6% YoY at fixed forex to $353 million.
WMG reported that the rise was pushed by progress throughout digital, efficiency, synchronization and mechanical income.
Music publishing streaming income elevated 16.2% YoY at fixed forex to $222 million, pushed, WMG stated, “by the affect of latest offers and renewals and continued market progress”.
Efficiency income elevated 3.6% YoY at fixed forex to $58 million, attributable, per WMG‘s earnings report, “to increased touring and dwell occasions exercise primarily in Europe”.
Synchronization income was $50 million, down 2% YoYat fixed forex.
Mechanical income elevated 6.3% YoY at fixed forex to $17 million, pushed by “the timing of distributions”.
WMG: PROFITABILITY IN CALENDAR Q1 2026
WMG‘s web revenue stood at $181 million versus $36 million within the prior-year quarter.
Working revenue stood at $264 million versus $168 million within the prior-year quarter (up 45.1% YoY at fixed forex).
The agency’s quarterly Adjusted OIBDA was $397 million versus $303 million within the prior-year quarter, up 24.5% YoY at fixed forex.
Adjusted OIBDA margin elevated 2.5 proportion factors to 22.9% from 20.4% within the prior-year quarter, pushed, WMG stated, by income combine and financial savings from the corporate’s restructuring plans.
“For the fourth consecutive quarter, we’ve delivered on our sustainable progress mannequin, accelerating core progress, margin enlargement, and money circulate productiveness,” stated Armin Zerza, CFO, Warner Music Group.
“Behind a worthwhile progress engine that pairs disciplined capital allocation and rigorous price administration with industry-leading inventive and AI initiatives, we’re well-positioned to create vital long-term worth for our shareholders.”
Armin Zerza, Warner Music Group
Added Zerza: “Behind a worthwhile progress engine that pairs disciplined capital allocation and rigorous price administration with industry-leading inventive and AI initiatives, we’re well-positioned to create vital long-term worth for our shareholders.”
All proportion adjustments referenced on this article are at fixed forex until in any other case said.Music Enterprise Worldwide
