Major sellers in the quarter included Alex Warren (pictured) Ed Sheeran, twenty one pilots, Teddy Swims and sombr
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Warner Music Grouphas issued its financial results for the three months ended September 30, 2025 (calendar Q3 – the company’s fiscal Q4).
According to the company’s fiscal Q4 (calendar Q3) results, WMG saw its quarterly global company-wide revenues reach USD $1.868 billion (across recorded music, music publishing, and other activities).
Total revenue was up 12.6%YoY at constant currency. The company said today (November 20) that its “all-time high” quarterly revenues were “underpinned by double-digit growth across recorded music and music publishing
The company also noted that the termination of a distribution agreement with BMG had a $17 million negative impact on its Recorded Music revenue, of which $10 million was in streaming revenue and $7 million was in physical revenue. Excluding the BMG Termination, WMG reported that its total revenue was up 13.8% YoYat constant currency.
“With our artists and songwriters hotter than ever, market share gains drove our quarterly revenues to an all-time high,” said Robert Kyncl, CEO, Warner Music Group.
“Our powerful momentum is underpinned by increasing the value of music- through volume and rate increases- and now with incremental revenue opportunities in AI.”
Robert Kyncl, Warner Music Group
He added: “Our powerful momentum is underpinned by increasing the value of music- through volume and rate increases- and now with incremental revenue opportunities in AI.”
Warner’s latest quarterly earnings arrived within a day of the company inking three separate deals with AI music platforms, KLAY, Stability AI, and Udio, which included a copyright lawsuit settlement.
In a blog post published late Wednesday (November 19), Kyncl outlined WMG’s approach to generative AI partnerships, emphasizing that the major label will only work with companies that commit to licensed models, properly value music economically, and give artists control over the use of their name, image, likeness, and voice.
RECORDED MUSIC
Warner Music Group’s recorded music revenues were up 12.7% YoY at constant currency to $1.534 billion.
According to WMG, this performance was “driven by growth across digital and artist services and expanded-rights revenue, partially offset by decreases in physical and licensing revenue”. Excluding the impact of the BMG Termination, Recorded Music revenue increased 14.1% YoY at constant currency.
Warner’s recorded music streaming revenue (including ad-supported and subscription) was up 5.8%YoY at constant currency to $931 million (see below).
WMG also breaks that streaming figure down in its balance sheet to highlight the performance of its subscription streaming and ad–supported streaming revenues, respectively.
The company’s revenues from recorded music subscription streaming reached $700 million in calendar Q3, up 7% YoY at constant currency.
WMG generated $231 million in ad-supported recorded music streaming revenues in calendar Q3, which was up 2.2% YoYat constant currency.
(Subscription revenue, adjusted by $8 million for the BMG Termination, increased 8.4% YoY. Ad-supported revenue, adjusted by $2 million for the BMG Termination, increased 3.1% YoY.)
The company said in its filing on Thursday that the “increase in subscription revenue reflected positive market share trends and chart performance, while the increase in ad-supported revenue reflects strong performance and the timing of certain payments in the quarter”.
Elsewhere in Recorded Music, WMG’s Artist services and expanded-rights revenue increased 64.3% YoY at constant currency to $327 million, driven “primarily due to higher merchandising revenue from the Company’s partnership with Oasis and higher concert promotion revenue”.
Recorded Music licensing revenue decreased 3.1%YoY at constant currency to $126 million, due to “to the timing of licensing deals”.
Physical revenue decreased 5.1% YoY at constant currency $130 million, primarily driven by the $7 million impact of the BMG Termination in the prior-year quarter, according to WMG.
Excluding the impact of the BMG Termination, physical revenue remained constant at constant currency, “primarily due to strong releases in the United States”.
Major sellers in the quarter included Alex Warren, Ed Sheeran, twenty one pilots, Teddy Swims and sombr.
Music Publishing
Warner’s global music publishing division – Warner Chappell Music – saw its quarterly revenues increase by 12.7% YoY at constant currency to $337 million.
WMG reported that the increase was “driven by higher performance, digital, mechanical and synchronization revenue”.
Music publishing streaming revenue increased 8.2% YoYat constant currency to $199 million.
Performance revenue increased 35.6% YoY at constant currency to $61 million, attributable, per WMG’s earnings report, to “an increase in concerts, radio and live events, as well as the timing of payments from collection societies”.
Synchronization revenue increased 19.6% YoYat constant currency to $55 million, “driven by an increase in copyright infringement settlements primarily in the United States and the impact of the Company’s acquisitions, including Tempo Music of $3 million”.
Mechanical revenue increased13.3% YoY at constant currency to $17 million.
WARNER’S CALENDAR Q3 2025 IN SUMMARY (% IN CONSTANT CURRENCY):
Warner Music Group’s overall revenues were up 12.6% YoY at constant currency to $1.868 billion in calendar Q3;
Recorded music revenues were up 12.7% YoY at constant currency to $1.534 billion.
Within that figure, recorded music streaming revenues were up 5.8% YoY on a constant currency basis to $931 million.
Recorded music subscriptionstreaming revenues were up 7%YoY on a constant currency basis to $700 million in calendar Q3.
Music publishing revenues – at Warner Chappell Music – were up 12.7% YoY at constant currency to $337 million.
WMG: PROFITABILITY IN CALENDAR Q3 2025
WMG’s net income stood at $109 million versus $48 million in the prior-year quarter.
Operating income stood at $143 million versus $143 million in the prior-year quarter.
The firm’s quarterly adjusted OIBDA was $405 million versus $353 million in the prior-year quarter, up 12.2% YoYat constant currency.
“We have made significant progress against our priorities to accelerate top and bottom-line growth and drive efficiency.”
Armin Zerza, Warner Music Group
“We have made significant progress against our priorities to accelerate top and bottom-line growth and drive efficiency,” said Armin Zerza, CFO, Warner Music Group.
“The double digit revenue jump we delivered in Q4, and our stronger second half performance, demonstrates that our strategy is working. We look forward to sustained profitable growth in 2026, as we continue to invest to deliver bigger opportunities for artists and songwriters and greater shareholder value.”
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