Warner Music Group Corp.WMG

Warner Music Group Corp. Segments Disclosure

10-KFiled Nov 20, 20253 min read
Segment Information
Based on the nature of its products and services, the Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing, which also represent the reportable segments of the Company. Information as to each of these operations and further description of these segments is set forth below and can be found in Note 1. The Company’s CODM, which is our Chief Executive Officer, allocates resources and evaluates performance based on several factors, including operating income (loss) and other financial measures.

    The accounting policies of the Company’s business segments are the same as those described in the summary of significant accounting policies included elsewhere herein. The Company accounts for intersegment sales at fair value as if the sales were to third parties. While intercompany transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses recognized by the segment that is counterparty to the transaction) are eliminated in consolidation, and therefore, do not themselves impact consolidated results.
Recorded
Music		Music
Publishing		Corporate
expenses and
eliminations		Total
(in millions)
2025
Revenues$5,408 $1,306 $(7)$6,707 
Cost of revenue
2,818 821 (7)3,632 
Selling and marketing expense
615 3 24 642 
Distribution expense
112 — — 112 
General and administrative expense679 131 325 1,135 
Restructuring & Impairment198 5 31 234 
Amortization expense136 122 — 258 
Operating income (loss)
850 224 (380)694 
Total assets5,328 3,463 1,038 9,829 
Capital expenditures22 3 114 139 
Depreciation expense (a)
53 5 60 118 
2024
Revenues$5,223 $1,210 $(7)$6,426 
Cost of revenue
2,599 763 (7)3,355 
Selling and marketing expense
663 2 20 685 
Distribution expense
105 — — 105 
General and administrative expense664 123 302 1,089 
Restructuring & Impairment166 — 11 177 
Amortization expense127 98 (1)224 
Net gain on divestitures(17)(14)(1)(32)
Operating income (loss)
916 238 (331)823 
Total assets4,945 3,017 1,193 9,155 
Capital expenditures28 1 87 116 
Depreciation expense (a)
52 4 47 103 
2023
Revenues$4,955 $1,088 $(6)$6,037 
Cost of revenue
2,502 681 (6)3,177 
Selling and marketing expense
695 3 12 710 
Distribution expense
125 — — 125 
General and administrative expense604 114 273 991 
Restructuring & Impairment40 — — 40 
Amortization expense155 90 — 245 
Net gain on divestitures(41)— — (41)
Operating income (loss)
875 200 (285)790 
Capital expenditures39 1 87 127 
Depreciation expense (a)
50 3 34 87 
(a) Depreciation expense is a component of general and administrative expense
Revenues relating to operations in different geographical areas are set forth below for the fiscal years ended September 30, 2025, September 30, 2024 and September 30, 2023. Total long-lived assets relating to operations in different geographical areas, which consist of property, plant and equipment, net and operating lease right-of-use assets, net, are set forth below as of September 30, 2025 and September 30, 2024.
202520242023
RevenuesLong-lived AssetsRevenuesLong-lived AssetsRevenues
(in millions)
United States$2,874 $450 $2,870 $460 $2,766 
United Kingdom857 34 774 39 726 
Germany515 46 513 99 535 
All other territories2,461 121 2,269 108 2,010 
Total$6,707 $651 $6,426 $706 $6,037 
Customer Concentration
In the fiscal year ended September 30, 2025, the Company had three customers, Spotify, YouTube and Apple, that individually represented 10% or more of total revenues, whereby Spotify AB represented 20%, YouTube represented 12% and Apple represented 11% of total revenues. In the fiscal year ended September 30, 2024, the Company had three customers, Spotify, YouTube, and Apple, that individually represented 10% or more of total revenues, whereby Spotify represented 18%, YouTube represented 12% and Apple represented 11% of total revenues. In the fiscal year ended September 30, 2023, the Company had three customers, Spotify, YouTube and Apple that individually represented 10% or more of total revenues, whereby Spotify represented 18%, YouTube represented 12% and Apple represented 11% of total revenues. These customers’ revenues are included in both the Company’s Recorded Music and Music Publishing segments and the Company expects that the Company’s license agreements with these customers will be renewed in the normal course of business.
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About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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