Shares in Warner Music Group Corp (NASDAQ:WMG), home to artists including Dua Lipa, Ed Sheeran, Beyoncé and Cardi B, fell 4.5% pre-market to $32.17 as it reported increased revenue but much lower profits than a year ago due to restructuring costs.
Digital revenue was roughly flat, and streaming revenue increased 1%, while recorded music streaming revenue increased 2.1%.
Underlying revenue, adjusted for the impact of the BMG Termination in 2023 and digital license renewal of $4 million, streaming revenue was 6% in constant currency.
Music publishing, focused on songwriting and composing rights, saw streaming revenue decrease 4.2%, but rose 5.2% when adjusted for the $17 million Copyright Royalty Board rate benefit, which is the settlement paid to songwiters for streaming services.
Net income came in at $48 million for the quarter, down from $154 million a year earlier, while adjusted operating income (OIBDA) increased 11% to $353 million.
Operating cash flow decreased 10% to $304 million.
CEO Robert Kyncl said: "We continue to evolve WMG, based on the principle that simplicity and focus drive higher intensity and global impact.
"This is enhancing our ability to attract original artists and songwriters at all stages of their careers, helping them realize their musical visions, and grow passionate, loyal fanbases."