Warner Music Group Corp (WMG) Q4 2024 Earnings Report

Warner Music Group (WMG) delivered a solid QQ4 2024 performance, underscored by a 3% GAAP revenue increase in the quarter and 6% year-over-year growth on a normalized basis. Recorded Music subscription streaming revenue rose 11% in Q4, marking the fourth straight quarter of double-digit streaming growth, while total revenue for the quarter advanced 3% and adjusted OIBDA climbed 11% with a margin of 21.7%. For the full year, WMG achieved a 7% revenue gain and an 16% increase in adjusted OIBDA, with a 22.3% margin, driven by streaming strength (12% full-year subscription growth) and publishing momentum (11% revenue and 11% OIBDA growth). Management emphasizes a tangible repositioning toward a flatter, more globally coordinated organization, bolstered by selective bolt-on acquisitions and increased A&R investment (up ~11% in fiscal 2024). The company also highlighted a sturdy cash-flow profile and an active capital-allocation framework, including a new $100 million share-repurchase program and debt-structure optimization that contributed to improved credit ratings. Near-term guidance articulates continued resilience in subscriber growth and wholesale pricing opportunities, with expectations for high-single-digit revenue growth in fiscal 2025 and targeted margin expansion of ~100 basis points along with 50%–60% operating cash-flow conversion of adjusted OIBDA over a multi-year horizon. Key risks include lapping of prior-year wholesale and licensing dynamics, near-term headwinds from distributor transitions, and a high-debt burden that could impact leverage if macro conditions deteriorate. Overall, WMG sits well-positioned to translate its strong release slate, global localization strategy, and publishing-digital initiatives into sustainable long-term growth, though execution remains dependent on pacing of price optimization and continued roster development.