Warner Music Group and its CFO didn’t part ways because of a dud quarter – WMG filing shows recorded music subscription streaming revenues up 11% YoY in calendar Q2

WMG left the industry reeling late on Friday (July 31), with the shock announcement that Armin Zerza was leaving his dual CFO and COO role, effective immediately — a departure the company attributed to “personal reasons.”

Zerza’s exit came just two months after WMG handed him that expanded COO remit on top of his CFO duties.

Today (August 3), WMG has made another unusual move – though one with a positive message for investors.

WMG has issued some headline “preliminary” numbers regarding its fiscal performance in calendar Q2.

The two standouts? Total revenues were up 9% YoY (at constant currency) in the quarter, while subscription streaming recorded music revenues rose 11% YoY.

There seems little doubt that WMG’s decision to announce its directional results so soon after the exit of its CFO carries a clear message: Zerza hasn’t left the building due to poor company performance. Indeed, the numbers themselves look reasonably rosy.

Having issued the preliminary figures, WMG has also pulled its official earnings date forward to Wednesday (August 5), from the previously scheduled August 6.

Zerza’s departure wasn’t the only important element of Warner‘s big Friday announcement: in his wake, Lou Dickler has stepped up to acting CFO of WMG, while Tom Corson has been promoted from his role at Warner Records to become COO of WMG itself.

Among the headline figures in the preliminary filing, WMG‘s overall revenues were up 9% YoY at constant currency to approximately $1.86 billion in calendar Q2 – the three months ended June 30, 2026 (the company’s fiscal Q3).

Recorded music streaming revenue is estimated to have reached approximately $1.001 billion in the quarter. That represents a 10% YoY increase at constant currency from $895 million in the prior-year period.

WMG noted that the growth in recorded music streaming was driven by subscription revenue growth of 11% YoY at constant currency and ad-supported revenue growth of 8% YoY at constant currency.

WMG did not break out the dollar values of its subscription and ad-supported lines, nor its artist services, licensing and physical revenues, in the preliminary filing; that detail is due with the full results on Wednesday.

WARNER’S PRELIMINARY CALENDAR Q2 2026 IN SUMMARY (% IN CONSTANT CURRENCY):

• Overall revenues up 9% YoY at constant currency to approximately $1.86 billion;
• Recorded Music revenues up 9% YoY at constant currency to approximately $1.49 billion;
• Within that, Recorded Music streaming revenues up 10% YoY at constant currency to just over $1 billion;
• Recorded Music subscription streaming revenues up 11% YoY at constant currency;
• Music Publishing revenues – at Warner Chappell Music – up 11% YoY at constant currency to approximately $377 million.

Recorded Music revenue overall is estimated to have increased 9% YoY at constant currency to approximately $1.488 billion from $1.354 billion in the prior-year quarter.

Music Publishing revenue – at Warner Chappell Music – is estimated to have increased 11% YoY in constant currency to approximately $377 million from $336 million.

Consolidated digital revenue is estimated to have increased 9% YoY at constant currency to approximately $1.251 billion from $1.132 billion.

Music Publishing digital revenue is estimated to have increased 15% YoY at constant currency to approximately $235 million from $204 million in the prior-year quarter.

WMG‘s operating income is estimated to have increased 80% YoY (as reported) to approximately $305 million from $169 million in the prior-year quarter.

Adjusted OIBDA is estimated to have increased 15% at constant currency to approximately $433 million from $373 million.

The period-over-period increase was, according to WMG, “primarily attributable to strong operating performance in the quarter and savings from the Company’s restructuring plans“.

WMG: PROFITABILITY IN CALENDAR Q2 2026

• Net income attributable to WMG was approximately $204 million, versus a $16 million loss in the prior-year quarter;
• Operating income was approximately $305 million versus $169 million, up 80% (as reported);
• Adjusted OIBDA was approximately $433 million versus $373 million, up 15% YoY at constant currency;
• Adjusted OIBDA margin rose to 23.2%, from 22.1% in the prior-year quarter.