WMG - Earnings call transcript Q1 2025 | Warner Music Group Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Warner Music Group's First Quarter Earnings Call for the period ended December 31, 2024. At the request of Warner Music Group, today's call is being recorded for replay purposes, and if you object, you may disconnect at any time.

Now I would like to turn today's call over to your host, Mr. Kareem Chin, Head of Investor Relations.

You may begin.

Kareem Chin

welcome Call. Music and Quarter Fiscal everyone, Conference Earnings morning, to Group's Warner First Good that earnings note are Please our available Form snapshot on XX-Q and our website. press release, earnings Kyncl; we our who call, take our answer we through and you CFO, your today's On questions. will CEO, Robert Bryan and have Castellani, then will results, our

financial forward-looking the release. events to Before remarks, have I'd results non-GAAP in you the provided conference views We our and the of during and press slide to these Music our reconciling our performance. certain future GAAP like plan remind to to call and Group reflect prepared schedules earnings this that results results present statements of earnings Warner in includes communication slides second current snapshot to earnings this refer that snapshot our about you

our unless adjusted are all constant will materials currency, these revenue of OIBDA and any References and adjusted statements. notable posted of be details and comparisons be disclaim figures that these All Also, today can made update to press items. in otherwise adjusted statements today, to discussed on disclosed for our all of please found revenue note in noted. as release. All we presented website. The forward-looking are such duty previously are

a beliefs expectations, for basis reasonable them. is and and there Our projections believe are faith, expressed good we in

over that forward-looking the Robert. that to result projections materially a materially can forward-looking factors contained there be that our statements from from that, it statements our However, and those to to with factors uncertainties could are expectations, Investors will they actual cause subject risks, actual variety and results or the differ assurance should can differ with turn be rely filings because results no is in achieved. cause I'll in beliefs of SEC. And not expectations. Information other that on concerning management's

Robert Kyncl

where the Los community to the everyone. the Thanks, devastation of you is I'm wildfires. hello, today from speaking Kareem, recovering Angeles from and

need. This Bruno past home including Award. and winning continue relief We together and of X, support Songwriter the Year artists fantastic took It the Charlie the pull to our awards, her to was Sunday, those most see winning healing XCX first the winning his XXth, demonstrate and in Allen Amy of songwriters effort everyone power for music. Grammy

sustained subscription results delivering a of all of while strong. A&R to growth part their Our it and a revenue Music artists resilience, is corners OIBDA year-over-year shareability songwriters and Music in XXXX, and the streaming Warner up engine adjusted catalog. reallocating driven careers releases from were during this quarter double-digit crucial Group across world Warner sector. Group's valuable and and unique like momentum by And that of ecosystem. thriving new is all It's reinvigorated built We such music's a resources key and durability of more makes investment. areas stages

figures are Our and results you all this in detail. items. go The economy, Brian notable adjusted the and temporary disclosed industry give for both will through our following in of I'll and macro reflect global the trends, quarter the more headlines, previously impact

we grew last the find reflecting increases. and release. Total X%, as the adjusted year's press grew X%, subscription Music revenue double-digit Recorded and streaming in details deceleration DSP can You of a price growth Publishing lap grew grew OIBDA our company X% revenue series Music and respectively, revenue expected Music, Within from earnings X% Recorded X%.

key of Europe pound. faced we driven as quarter, currencies dollar the and the the such by against largely the headwinds, During FX significant strengthening

roughly OIBDA headwind that movements currencies. more to XXX point of than currency Given adjusted nondollar our a our revenue These half is margin. in created basis

we're these impacts will why so our to the strategy focus like I'd my As remarks and on future. explain stabilize all of time, confident over about

pie, the greater of reinvestment share itself our increase flow, for become cash clear: efficient, increasing and and share both value meaning grow return. market more music by shareholder providing of pie the are for the goals Our

First, in terms of growing our share.

at You've baby becoming veteran me every of bands stage talent often best talk the to their heard home careers from for superstars. about us

Park the artist to successes showcased how in firing [ have across includes who entire with XXXX. [ XXXX whose Benten cylinders song our [ Mars, such XCX, the Dead the and new [ is had all example recording that recent success Rebrian recording stores, to so debut Chapel, superstar ] things, including ] XXXX [ Alpha streaming ]. to monthly Swims, to new August Lincoln Zac ], [ Boon, many Madonna recent ] world household in #X Benson in And Teddy charting Franklin world pleased #X Jeff Boon and Bill Black streams XX am reaching Miller drove album United Grateful in trend XX become and to including Bill's Warner Bryan, ] DuaLipa, Ava last rights Coldplay, the print Our k-pop in States. million of and great to year, names latest a we're also The prior Mac ]. year on beautiful the likes David in ], album increase song both [ in folded irreplaceable set remain the female top biggest audits released finally, Things by iconic XXX% which latest Satter, and viral version the versus XXX us had listeners. Marissa of or Alpha Jio catalog, has the record-breaking as how control. Regional Thailand's on the with listened continuum, like by the Teddy Italy partner whose music XXXX Fleetwood [ vital over the Music Max artist of [ Swims B, across lose the biggest catalog in relevant we of huge in Rose of and ], and superstars [ is become highest Mac, the the great [ Dua Cardi are [ most Gila, A from a markets. can for EU signed Lia A Global with from with in ] songwriters Lipa, Airplay most the that including Mike our ], Bruno ]. U.S. Towers Share #X of who legends superstars, Charlie who has Spotify chart. I see to soloist

in catalogs acquiring Cloud making organic like Japan. increased such Benelux appointing ] changes, in Skillbox as local investment as A&R, to to continue quarter players market to other leadership partnering the In new and of behind pull CEO our with part and levers ongoing addition [ X generate efforts growing including our share, valuable including in India, we a

market global All of work is this at growing aimed hard our share.

early year on strong [ over positive the publishing data. our the performance quarter, one seeing its to the already year-end XXX of are hot At X.X labels signs Atlantic, time, landing according increased U.S. flagship market prior billboards continues share as luminate We point at in percentage #X same chart. by ] its Chappell Warner

tiers experimenting of the Whether continued ecosystem. music new We collective the it's Second, been let's innovation widening is models, talk has our partners growing our adding to to evolve and ensure business about launching pie. expanding pie. with growth our in how constantly of customers in our we're aligned always the work more goal with attract actively DNA. or partners network part new with Collaborative features, formats, to of the

starting ensure our value the is pie increases that the expands. that goal of As happen, as to is revenue music to

look of songwriters of and music additional increase top represent through forward we entire expand of for further XXX. Spotify. While there well that increasingly innovation Spotify, music we make positive We recorded contributed WMG half for hogriders ecosystem. benefits momentum. of repertoire to publishing music across billboards the powerful music deals, announcing the rights new to including XX is just provides inked XXXX, as as we're seeing renewal forward to be with enabling and with is X us artists drive Billboard's and the the as move progress important our combination any an still and to made Spotify, service. over top recent growth Odyssyns industry, essential It our In to ] our together that value [ our collaboratively agreement Today,

fueled continue to the so. has over subscriber music growth and do Our will years past XX massive

Through to we've our previously businesses artists make and continuing to real on Moving and bring to intensity impact. announced allocate activities doubling most We've value and more simplicity, delivering and are organizational in greater on company restructuring these central fronts, focus resources exited proposition of to combination changes down we through and mantra made on schedule a is on same efficiency. My we accretive progress order are while the our programs. songwriters. our the noncore efficient. to time, technology, into the effective investments and At some

strategically we goal recorded will XXXX. A&R evergreen and to with to with of such remainder last savings option an the the premium this double artists As Khalifa, Line Bruno a these year. Today, important investment told Florida provide to that Gram. year will our Providence an Adele, songs as ] from enabled digits our the increase This propel Tempo business you, announced in forward. of controlling interest and our reinvest initiatives by us [ was acquisition we majority to end Equity the rights Wiz acquire XX Partners by Tempo music by Lucas includes of music catalog, us Mars, pilots, which into Georgia

for rights, Tempo's attractive robust quality and high profile an our flow investment that the to make financial key addition criteria. these margins In meets generation of cash

of even catalog. other and the We as scope with deals have agreement investment control accretive over our and will this the a off. publishers become we direct preexisting Tempo, more expand roll administration with

great in of Tempo example Our a our strategy is acquisition M&A action.

become delivers greater we're enable virtuous that accelerated cycle a As more will we growth. efficient, that creating reinvestment

industry to expertise. a remains outlook services DSPs, growth and focused provide through innovation propelling artists our based is long-term through intact, collaborative our operational our underpinned our and ability global and deep by to value healthy confidence evolving efficiency. the and with upon on songwriters And Our

David as I'll it we're with Zach new the to excellent Jack Maria Guetta, really Bechara, excited Gesu, and our catalog. And ] well performance about over as Nacala upcoming Tarana Boon, music of Bensen Harlow, Lizzo, Brian [ from Finally, Bryan. that, turn our

Bryan Castellani

Robert, everyone. you, good morning, Thank and

and get I comparability. which will metrics appropriate, quarter our reference year are I that throughout will want into growth affect growth results, adjusted are rate constant all comparisons everyone remind Before disclosed I items the previously in There for that and the items. currency to notable where be

which have Music delivery The and as year was decreased items, revenue basis, catalog in saw we while against a for X% and rates release revenue e-commerce adjusted OIBDA in our historical services basis on total decreased lower prior roughly Park, margin XX%, points additional roll-off. XXX quarter. with EMP. Licensing artist XX% over headwind XX.X%, and timing million Japan We strong revenue quarter. and and due strength prior X%, in against the of increase basis. In million of quarter These physical compare reinvestment. X% decreased compare conversion renewals the $XX year $XXX licensing adjusted activity XXX Operating and streaming increased XXX revenue Adjusted Sync adjusted Music promotion growth. Performance digital extension our a deal operational $XXX X% decrease of the basis OIBDA the a with OIBDA margin weakness emerging million prior radio of XX was an these growth X%, flat revenue from to disclosure points driven timing streaming XCX, grew XX% a year declined the total payments that X%. XX%, basis XXX an Subscription U.S. adjusting quarter. X%, increased adjusted from million points. On OIBDA capital working Artist to and XX.X%, X%. as basis. U.S. which savings catalog robust had an flow declined FX of of provided represented due $XXX decreased roughly associated Ad-supported of deceleration of adjusted platforms. adjusted BMG, margin revenue continued basis revenue offset basis was in adjusted impact namely On QX, basis streaming weakness and in and to was and points driven grew dollar from of year in margin. Recorded have U.S., by to lapped with foreign revenue including growth decreased to revenue quarter, press headwinds, OIBDA. we activity. outside revenue as the cost partially to by Lincoln prior XX% quarter. notable timing prior mechanical X% content ongoing Charlie points. an due grown to impacts the basis on Free details with Publishing exchange while a the grew increase digital an operating adjusted new BMG increased concert year The of increases. partially flat, decreased year in for revenue adjusted of of X% Recorded QX When million in the licensing and XX revenue deal the earnings in non-U.S. the expected fiscal streaming the cash and XX% agreement in by XX% decrease primarily sales. price the X% increased adjusted expanded FX with well total declined was prior which decrease the X% approximately due touring items increased grew was market streaming is $XXX $XX headwind would decreased and Rose primarily licensing revenue increased certain by OIBDA XX% QX Music by to Physical a to revenue a of cash increased XX%. X%. in and Music Publishing margin a impact increased points. from reflect of as due in and OIBDA our France, flow of which X% renewals. decreased X%, items, rights from revenue and releases Korea, extension XX% margin cash Net and business, a in impact as pronounced for OIBDA million offset XX% net flow and currency. mix total of

XX, debt billion a As of balance December $X.X cash $X billion. $XXX had million, net of debt of of we and total

we date was core and debt reduce our last our costs Our over and way. business weighted of nearest focused average that XXXX. the X.X%, like year, cost reiterate I'd maturity remains to the along on

the we've of As we've actions of course generated prior a to result fiscal able reinvest. the been that taken over cost savings year,

of is acquisition mentioned, As Tempo Robert prime a strategy. our this of example

as and results planned. Our on is restructuring track program delivering

immaterial, Looking as-reported we ahead, simplify on as the disclosed previously focus constant disclosure become to notable our results. intend to commentary and items and our currency

BMG on single-digit high subscription when basis. continue streaming for and multiyear this We fiscal growth to expect adjusted for a

headwinds term, to target we a XXX As result persist in remains multiyear reaffirm to margin a unable new to goal improved flow XX% music adjusted basis, points monetization. deliver that expect On of near annual exchange margin the we on of expansion for resilient remains approximately are our the our foreign expansion and this deals and operating fiscal growing OIBDA. The DSP year. healthy, basis to focused XX% cash is with industry of conversion of

excited forward music. are to We slate our look about deliver great and release to continuing

you long-term is we while focus success. strong, business deliver the core to Thank today. We'll to now open efficiencies call Our questions. underlying joining and for for on creating continue our us

Operator

the comes Swinburne Benjamin Our Stanley. line first Morgan [Operator of question with from Instructions]

Benjamin Swinburne

negative Robert, the dealing is this trying or retail if and with lot I specific think Brian, fixed little the you wondering shifting anything that be a deal, how know on another time. could a you'd not your taking asking get you're model Spotify royalty piece, revenues there. from you're important deals of how about that's talk to like revenue with is your may deal your piece the to to own so distance of see would think about between DSP that into way share create here. overhead this some it thinking to you you wholesale It evolved I talked leverage. you detail, high U.S. the sort much I'm then, you and over currency be is we some on but too in artists can't understand about comment cost should whether new from in dollar if kind have cost of to of that your currency And and a about have tied And really kind bit could you've or base helpful else direction may grow which go? some risk pricing about corporate your partners simply and their probably

Robert Kyncl

and share we our calls, a on thank we're Ben, for day. itself, of where Thanks, DSP which scope the that opening has example increase our acknowledging can't the Atlantic, pie said to And you previous But efficiency. with good strategy, morning. is and X-pronged into which the on quarter. that details. the pie progress remarks work get as day I'll and increased my We share, the say the deals I of market the our focusing what in gave then is last in to

size there's always we to now X very we progress those of this we So deal, which conjunction easy we're out the through headed that the it. It's this do of our sort to Amazon is of But set doing to distribution on on as And in -- the it's increasing our never roll need things Spotify. deals, one with direction, that transition partners. I'm pie. that that this in it's strategy, and the I'm happy have with obviously entire and we important which happy still say are industry. time with

of with the there's step do now and direction. But this for cycle So to great is really to this in all through. others more work a right

happy. So very

Bryan Castellani

Bryan. it's Ben, And

do exchange, about XX% On revenue currency. as our of with is, is noted, to is you nondollar it the not It foreign the royalty.

the strengthened expense and dollar programs do, course, is on through really but hedging post-election. focus materially This have unusual exposure underlying of that in-period to income other runs the OIBDA. the below more allow that as OIBDA. us quarter runs the an hedging through it operation, So was We

really just So do it in exposure that period. to the has nondollar with

Operator

Our next Morris line Guggenheim of question Michael comes with the from Securities.

Michael Morris

about from congratulations. and the I want morning this ask to too announcement

on follow up question. to Ben's First,

partners mention when further at we answer, can products move something to need you your could did so fan paid it about new is of You domino you every product things, through need a partners on of sort or distribution in And at new all your that with types Or coming these with you to timing fall? to have don't the expand last of the experiences large number talk all agreements least order it? maybe subscription you different to tiers. of ideas. that Can start see forward on things different

that's So on financials? Tempo. the second, a that you impact now stake might do speak what how just also size now the your couldn't question. And you first do with then ownership bit of Can about your of what can in terms it little and before you changes

Robert Kyncl

Sure. Thanks, Michael.

So principles apply we at for every everything don't we once. fairness no, But anything certain do. there of need happen single that to that are all partner we to

go kind kinds make want as the the And have roll best So ownership of expansions, because best pie for if music catalog Tempo, we need changes over lean have correctly as is of grow to always don't ways can't way control you on we for strategies rights you that ecosystem, to long having everyone, bundles. we everybody growing more tiers, consistently is of same monetization and that different we continue On lot we're obviously, don't full rights with at can us but all the them, and to very a there's you time. focus happy, control, to sure the permission. as expand the out you value fairly maybe which are. we're to the those. business the to into of to models, any And formats,

XXX% have of have secondly, entire Tempo. us. year, all as we publishers control. and distribution now labels agreements come will each with not So we titles with inside distribution other they to year, expire, Each And had the

built has be which deal this it, So growth will accretive. into

and let I'll deal of to do love this other more those. point. love really many Brian we the take So

Bryan Castellani

from margin. it. over our music Music. Robert answered said, partners It's been and time. control, really Again, Tempo more admin and relationship think publishing wheelhouse Recorded had expands the and I will with our distribution XX% XX% high-quality was us them probably to assets us the revert But high we beginning Robert about at more in and as transaction it Well, gives

Operator

next Our Benjamin Bank. of from with question line the Black comes Deutsche

Benjamin Black

the that faster great appears drive other hospital be And So question the banned, investors what TikTok any of partner Were is out content, could is also, And on the control sort line? to you to going expecting And this announcements sizing second forward? how the think pull you're than in I'm emerging ad-supported there deals. are of side in choppy. obviously of that curious new of growth? yours levers potentially are the putting any there platform your the should about a event quarter? your they big ad-supported headwinds

Bryan Castellani

prior that's Bryan. ad-supported ad-supported There So hit you we as the Ben, there that in is in delivery parts. the I the the announcements X believe emerging it's piece. and deals. -- And were of on quarter there as I'll and year. by on new take the know, content anything new that deal platforms impacted you was the in timing emerging or don't terms platforms, said,

driven. On obviously, macro that's the ad-supported,

number that but second it driven. to is question of is do We going by then on players. over have impacted your And expect it less time, influence stabilize TikTok. of part be macro a We and the to

Robert Kyncl

take to it. new Obviously, I'll report. nothing

lot together. exposure excellent of ban on and about you themselves. an uncertainty muted. relationship our the TikTok if as have of with for really deal obviously, year, a We But worked And there's well this them it's team think potential

that things we to over. parties. have much But one for of hope resolution obviously, So between this worry about. a control good X we But is the those not

not don't we it. exposure and we have about So to much worry do

pie and in our on pie growing focused other growing So areas. share the of the

Operator

from Our line the comes with Venkateshwar Kannan next Barclays. of question

Kannan Venkateshwar

is single-digit comment, the should over course that that the impacted year? calendars? So growth with high And then of cadence we is the year? you think by This your margin prepared on How that about roughly this subscription the obviously, guys that's streaming. starting release FX beyond control. something that remarks, Is referenced even in

of that But within understandable. offset and that for of is have is some a leverage to impact also, invested little company. these you that room you've good these more think be the savings forward? they investments, operationally the impacts? cost-cutting It you of some the initiatives about So maybe understand what initiatives to when cost other would going of there And bit what into add underway, you kind those capabilities

Bryan Castellani

take It's Yes. I'll the part. first Bryan.

streaming, X% price So we would be year. on the subscription the had signaled last quarter, the lapping in prior we increases

And a that, was think at X%. expected it hit and of I the with and low subscriber-driven we so our even decel guidance just really we end

healthy that speaks continued to, improvement point underlying which conviction for to growth opportunity these that deals in then health resiliency And the we adds and would us. see. I the price recent and and subscription better so monetization And say, and support for

of doing well. on is the and question terms -- In slate slate your

as our working. is it number well music, points. and basis then expect restructuring to Tempo a in catalog releases it's example investing it, is chain, expand those having not the being perform technology operational being year in your impact. those to insights, new on investments, And a are on platforms, Robert good program on on driver it's guidance on skills by digital the margin applications, continue as forward focused look to then the XXX continue to get the whether impacted margin the supply we whether of and it's the and of reductions, The and can yes, whether track, an foreign we're of on. some to but continue cost to and able exchange We there. for just things And invest is really of the to so point do is our well are our

Robert Kyncl

Yes.

I maybe your think pick supply just chain. of up example I'll

and chain. and additional without adding have been higher much it that efficient it we've so volume on digital can headcount. we investing making into both stable much physical have We supply throughput more And

possible. examples it. small be standardization X much workflows, like be into Other would is this so standard investing automated example as which of as and can And

that will that lot So there's fruit and bear with that things mentioned, fruit a of every lot on started a and single quarter And going year. I single bear as on. going already, to are every

to we sight we do of so have line So because it. we great a see to ROI continue on

Bryan Castellani

the over I we can we're that that to to stabilize a margin expect this come we're in here to a variable move time, headwinds back, but dollar, appreciation. moment saw we've year. to just -- election think a the I in just Currency want And December, an X% think and does so in would post where I we pretty and reiterate in currency seeing are seen headwind the

So unusual, over but to we do time. expect stabilize it it's

Operator

Rich question LightShed comes next Partners. of Our from the line with Greenfield

Richard Greenfield

I'm just And level, thinking you? how affect DSP on iterating they've product, more Or sort Amazon they've or innovation with rising they and are to music it sort much how hasn't on digital it Internet does media, like is among Apple, less U.S. but you sort Music innovation. got like certainly Ticktock know, Music's winner are you in you've Spotify YouTube new like that long like bundles. it's generally, feels of look wondering And history Robert, offerings, is of most -- I active take -- up rapidly at that visible gone. just in what seem don't product and can And Google the don't the competition of done of stimulating I'm a U.S. outside given like in certainly when about competition seem really certainly wondering sort most. DSPs? the the just broadly generally active do? appears take side, you winner

Robert Kyncl

the these want want side other with grow. from people doing was which more simply doing from innovate, they all because we're what companies being Good know the with outside I through I obviously question, think that's to -- They -- and YouTube, is experimentation true Rich. lot ultimately [indiscernible] on to enabling when The all Amazon, it's of a at this innovate. whether to Spotify and want

the rights and it you're to it need that. dealing a partner we copyright, table limitations, lots just you takes And with obviously, is ability partner. And state different do and of the that so it. When are and what do willing there's having to

we're I this innovate value the at best share it to permissions And is way to [indiscernible] leaning increasing and into same do do client it the so helping in was giving them and time, by heavily. the them And grow our the the for that part music. of the us mentioning of

for great great do And think I that a is a really way we so is can full both. drives in that value it coexistence

Richard Greenfield

anyone Amazon the seeing is sort or super that space premium wanting things else on? or Spotify to an you fan of focused in are do super like Apple And like an

Robert Kyncl

from I think -- more ultimately is ideas what there if but come ends the other, up that, I their think similar with are enough are would great And different may actually different. on of people that they own there are they're that [indiscernible]. up be anchored music. than that's they And even provide products variants where slightly each but being we and are

and is Spotify. very active to Apple as well. is very Amazon obviously, So starting on YouTube [indiscernible] active

Operator

of Our next Evercore Maral the question line Kutgun ISI. with comes from

Kutgun Maral

subscription Great. could. I have on streaming, I superfan and one if on

quarter that still of a and a about thinking the a with maybe be only I ] lapping [ untapped industry path the area bit release press you unpack to well. And if Music has I little are if more? this specifically know because the First just up on into. given the the asked lot superfan. seems anyone, high price lead was end didn't was Spotify on Brian, subscription seem relatively innovation number the that extended could X.X% to opportunities, you're I but decel drive the Can to has been still singles. the to streaming over in new DSP And area on talked reference Recorded a your piece. question trends lower the a increases, of superfan, to the Because as monetization you the How but to surprise that have there point, shouldn't a follow about,

as the call maybe in year but Tempo. answer. the and earlier quarters, trends X And with harder presumably in comps dynamics your better to out those Amazon than there perhaps some trying next Spotify what's subscriber on be mentioned You going this contributions that trends get of rest impact with understand along more because since more offset will your the well. I'm just from to Anything by

So help be would appreciated. any

Robert Kyncl

right. All superfan. I'll question the take on

bit a little question. it So also -- and ducts Richard's

of different think figured And our -- will greenfield is partners. lot people an What there spend a interact at passionate money number as good to for experiences thing. We're they're to artists, and merchandise and it's is we we're strategy it not lot our on been It's that with do to a are as one looking a a variance partners. out, everyone. that kinds know has this a which different distribution in-person both through a be by certain from of I homegrown area experiences own extremely there all of about willing of an of willing artists. well

everybody that that So in is is we the know models region. the to change region also of here. from It's bring Obviously, documented been Asia to success the engagement obviously well trying with there.

are So different with innovation doesn't continue we'll are there. participate hasn't to the directionally, it around a we in it anyone. just is demand stop but mean companies we cracked there of will we know and but expenses it, because the efforts that this, by and around match And to -- it. want lot

that's else that. on so needs nothing report And really to

Bryan Castellani

volume streaming vast I the see to as catalog. share, driving the the we've did growth strong would additive expect said, performing is as and our and improves, over then had is signaled we last we the to market with expect that on we slate again, quarter, streaming, we're and as subscription pleased subscription it. of as Kutgun, said, we majority be how And the time, driver pricing -- decel. pricing that what subscriber And the improves, Yes. the

So time, we to additive. there continue and being subscription and vast over see volume majority the pricing being

Operator

UBS. comes next of line Levi the Our Batya question from with

Batya Levi

Great.

performance, you've couple Or versus signed, clarification in year? talk rate include And Tempo. Does the for is other how maybe growth and One, a a holds, that expecting you regions? compares the if are the including publishing questions. the some FX side, in and -- CRB it about the U.S. Spotify guidance to Just deal on side, maybe The on run the high deals final margin on the one. can that on single-digit of still the the for old efficiencies just subscription good the rates you new current flow side.

Robert Kyncl

Got it.

get On can't feel deal we before, happy that mentioned we #X artists our this we that the assured with into so priority, very obviously, deal. of protecting the details right, -- the but rest and and songwriters, is

Bryan Castellani

Tempo subscription, mainly on Batya, be music deal publishing. the will Yes.

believe guidance working. to continue had to again, On our and savings margin, so restructuring we and drivers And continue the there just we in mentioned. I are

reinvest example items as and spoke of Tempo about that in We the business, continue as well the earlier. technology being to an I Robert

Operator

of Sachs. Stephen Our comes Goldman next the Laszczyk from question with line

Stephen Laszczyk

you that Spotify maybe for then appreciate this that spoken greater can't Brian, the a but or control detail, in just into deal deal again. curious margin. wholesale there's gives that's much anything go in if about past? into something commitments Robert, And one FX and pricing, you've on the new follow-up you on

takes margin the XXX about puts throughout going of I other you and impact And on any we cadence basis the thinking the point that Curious should out we can called margin forward? just on this mean You quarter. be year. give consider? the us should then help how

Robert Kyncl

Yes.

have And answer this that achieving hope. doing a us we going is not of that. great certainty go lot have focus if into deals We So detail. deal these into we always gives we what not confidence. on --

Bryan Castellani

time. programs, we said but basis the are year. we adjusted exchange on the And rest basis, in XXX over XX%, our year-to-year other And foreign The Stephen, margin hedge is the over But moderate And below is of points. operational about before, exchange hedging these X% we and immaterial, a OIBDA. Again, on piece revenue that OIBDA. as think again, on down up of the about and headwinds do X% expect X-quarter achieving I really drag our to it, shows income to that foreign

Operator

with of Our line Securities. of Jessica the Reif Bank comes question Ehrlich America next from

Jessica Reif Cohen

questions. X Maybe

catalog On compensated? thinking the press secondly, new get the the on coming release. orders years, super can any you about how you about talk you're And a can little talked that monetization bit provide about How color who would then you video of the in bear do the premium? the cost

Robert Kyncl

just you what mean on Sorry, clarify, the question? to Jessica, second

Jessica Reif Cohen

like video to and monetization. both music alluded You catalog

thinking about video. So I'm just you're wondering how

Robert Kyncl

Got it. Video.

who on a splits the sort way would So used Obviously, higher pay experiences, consumers we're super price. bear And the have premium the them. of cost? then just to our we

if it video the product and using segment the more from the and it's Spotify, the for obviously, paves others. of and more who's So and on you're it -- more video you've getting obviously -- and consumer you seen front, probably way us better

things can before. So what see goes just to models, the I all think to formats their business And grow bundles, you'll I we with order increasing that these DSPs in peers There this mentioned are pie. expansion. that from do of

question is So that you're effectively the asking and on format inside the a deal.

Jessica Reif Cohen

just follow-up. And then globally these last services markets? or like maybe be the in primarily X Will offered bigger

Robert Kyncl

or country the is over country I question again, expansion maybe is that's always time. the a the intent side, end. go other working would But global thing regional, the having say at by always for experience them. the intent on one but to

Operator

Kyncl for like now Robert hand would the to remarks. to closing over call I back

Robert Kyncl

right. All

our order efficiency confident today's your technology to the with and so And the partners of with obviously So which our headed the grow much both those X-pronged we're for drive the technology. care. allowed term strategy we're short the is share focus through our Really about through a in of X to margin. happy Amazon as larger going outlook Spotify the prongs, fund where by rest work And our industry. direction grow through attention and and industry. and really to our and which on then together appreciate future happy pie Tempo, and call. use that reinvestment and something funds I'm deals impact. progress, thank for to on greatly attending by take innovation And on our reiterate our the increasing set new freed-up growth well for pie it And in as like standardization we're as market share you accretive of is long-term we're need

So so Have much. thank great you day. a

Operator

your Thank for This you concludes call. participation. today's conference

disconnect. now may You

Warner Music (WMG) 6 Feb 252025 Q1 Earnings call transcript