Warner Music Q2 Net Income Drops 63% in 2025

Warner Music Group reported a 63% year-over-year drop in net income to $36 million, or $0.07 per share, for its fiscal second quarter of 2025, missing analyst expectations. Revenue fell 1% to $1.48 billion, though it increased by 1% in constant currency terms. The sharp decline in net income was attributed to unfavorable foreign currency movements on euro-denominated debt and higher income tax expenses. Operating income rose by 41% to $168 million, reflecting improved cost management. Recorded music revenue declined, mainly due to lower digital and artist services income, while music publishing, physical, and licensing revenues showed growth. CEO Robert Kyncl expressed optimism, citing strong chart performance and U.S. market share gains driven by ongoing strategic efforts.