By Denny Jacob
Warner Music Group saw net income decline sharply in its latest quarter as debt tied to foreign currency weighed on its results.
The entertainment and record label conglomerate recorded net income of $36 million, or 7 cents a share, for the second quarter ended March 31, down from $96 million, or 18 cents a share, in the prior-year period. Analysts polled by FactSet had expected 27 cents a share.
Warner said the bottom-line decline was due in part to the impact of exchange rates on its euro-denominated debt, resulting in a $34 million loss in the quarter.
Revenue edged down to $1.48 billion from $1.49 billion. Analysts polled by FactSet had expected $1.52 billion.
Warner said the decline in total revenue was driven by lower recorded music artist services and expanded rights revenue, though partially offset by factors including higher licensing and physical revenue.
Chief Executive Robert Kyncl said strength in the quarter was partially obscured by challenging comparisons with last year's results.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
May 08, 2025 08:19 ET (12:19 GMT)
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