The following is a summary of the Warner Music Group Corp. (WMG) Q2 2024 Earnings Call Transcript:
Financial Performance:
Warner Music Group reported a 7% growth in Q2 total revenue. Recorded music revenue and music publishing revenue increased by 4% and 19% respectively.
The company saw an 11% increase in recorded music streaming revenue, mainly due to a stronger music performance, subscription growth, and price hikes.
The total adjusted OIBDA grew by 9% or 10% on a normalized basis.
At the end of Q2, the company had a cash balance of $587 million, total debt of $4 billion, and net debt of $3.4 billion.
Business Progress:
Warner Music Group has seen success with their recorded music and music publishing divisions with artists like Tracy Chapman and Joni Mitchell seeing boosts in their weekly audio streams.
The company continues to focus on growing the value of their music through discussions regarding the evolution of AI and protections for artists and songwriters.
To nurture original artists into the next generation of superstars, the company is extending its lower-tax services and expanding its presence in dynamic Recorded Music markets.
Warner has reported a strong performance in new music and expects to see the full impact of price increases with other DSPs like Apple and YouTube in the second half.
The company is developing lower-touch services that aim to expand the reach and profitability of relations with rising artists.
Warner is also optimizing older content for streaming across major DSPs. The company noted significant deal pipelines in the music rights market and expects these opportunities to continue.
More details: Warner Music IR
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