Warner Music Group Files 2024 10-K

TL;DR

WMG filed its 2024 10-K. Depreciation was $87M in FY23.

AI Summary

Warner Music Group Corp. filed its 10-K for the fiscal year ending September 30, 2024. The company, headquartered at 1633 Broadway, New York, NY, reported depreciation expenses of $(87) million for FY2023, $(76) million for FY2022, and $(77) million for FY2021. The filing covers the period from October 1, 2023, to September 30, 2024.

Why It Matters

This filing provides a comprehensive overview of Warner Music Group's financial performance and operational status for the fiscal year 2024, crucial for investors assessing the company's health and future prospects.

Risk Assessment

Risk Level: medium — The provided text is a standard 10-K filing header and does not contain specific risk factors or financial performance details that would indicate a high or low risk level.

Key Numbers

• $87M — Depreciation Expense (Fiscal Year 2023)
• $76M — Depreciation Expense (Fiscal Year 2022)
• $77M — Depreciation Expense (Fiscal Year 2021)

Key Players & Entities

• Warner Music Group Corp. (company) — Filer
• 1633 Broadway, New York, NY (location) — Business Address
• 2024-09-30 (date) — Fiscal Year End
• $87 million (dollar_amount) — Depreciation expense for FY2023
• $76 million (dollar_amount) — Depreciation expense for FY2022
• $77 million (dollar_amount) — Depreciation expense for FY2021

FAQ

Key Financial Figures

• $0.001 — which registered Class A Common Stock, $0.001 par value per share WMG The Nasdaq Stoc
• $5.223 billion — o Mars, Cardi B and Dua Lipa, generated $5.223 billion of revenue in fiscal 2024, representing
• $1,210 million — Pilots, Lizzo and Katy Perry, generated $1,210 million of revenue in fiscal 2024, representing
• $5.1 b — market. Revenues increased by 13.4% to $5.1 billion, driven by the continued resurgen

Filing Documents

• wmg-20240930.htm (10-K) — 2624KB
• wmgrcfsixthamendment-sixth.htm (EX-10.62) — 93KB
• settlementagreement-mlfina.htm (EX-10.63) — 105KB
• wmg-meuxearlyredemptionagr.htm (EX-10.64) — 44KB
• insidertradingpolicy.htm (EX-19.1) — 99KB
• wmg-ex211xq42024.htm (EX-21.1) — 224KB
• wmg-ex231xq42024.htm (EX-23.1) — 2KB
• q42024ex311.htm (EX-31.1) — 9KB
• q42024ex312.htm (EX-31.2) — 9KB
• q42024ex321.htm (EX-32.1) — 4KB
• q42024ex322.htm (EX-32.2) — 5KB
• dodd-frankclawbackpolicy.htm (EX-97.1) — 43KB
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• wmg-20240930_g1.jpg (GRAPHIC) — 64KB
• wmg-20240930_g2.jpg (GRAPHIC) — 92KB
• wmg-20240930_g3.jpg (GRAPHIC) — 28KB
• wmg-20240930_g4.jpg (GRAPHIC) — 49KB
• 0001319161-24-000039.txt ( ) — 14141KB
• wmg-20240930.xsd (EX-101.SCH) — 69KB
• wmg-20240930_cal.xml (EX-101.CAL) — 107KB
• wmg-20240930_def.xml (EX-101.DEF) — 494KB
• wmg-20240930_lab.xml (EX-101.LAB) — 933KB
• wmg-20240930_pre.xml (EX-101.PRE) — 711KB
• wmg-20240930_htm.xml (XML) — 1649KB

Risk Factors

Item 1A. Risk Factors 21

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 39

Properties

Item 2. Properties 40

Legal Proceedings

Item 3. Legal Proceedings 40

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 40 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 41

[Reserved]

Item 6. [Reserved] 42

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 43

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 81

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 82

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 123

Controls and Procedures

Item 9A. Controls and Procedures 123

Other Information

Item 9B. Other Information 124

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 124 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 125

Executive Compensation

Item 11. Executive Compensation 125

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 125

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 125

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 125 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 126

Form 10-K Summary

Item 16. Form 10-K Summary 130

Signatures

Signatures 131 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (this "Annual Report") includes forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Some of the forward-looking statements can be identified by the use of forward-looking terms such as "believes," "expects," "may," "will," "shall," "should," "would," "could," "seeks," "aims," "projects," "is optimistic," "intends," "plans," "estimates," "anticipates" or other comparable terms or the negative thereof. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this Annual Report and include, without limitation, our ability to compete in the highly competitive markets in which we operate, statements regarding our ability to develop talent and attract future talent, our ability to reduce future capital expenditures, our ability to monetize our music, including through new distribution channels and formats to capitalize on the growth areas of the music entertainment industry, our ability to effectively deploy our capital, the development of digital music and the effect of digital distribution channels on our business, including whether we will be able to achieve higher margins from digital sales, the success of strategic actions we are taking to accelerate our transformation as we redefine our role in the music entertainment industry, the effectiveness of our ongoing efforts to reduce overhead expenditures and manage our variable and fixed cost structure and our ability to generate expected cost savings from such efforts, our success in limiting piracy, the growth of the music entertainment industry and the effect of our and the industry's efforts t

BUSINESS

ITEM 1. BUSINESS Introduction Warner Music Group Corp. (the "Company") was formed on November 21, 2003. We are the direct parent of WMG Holdings Corp. ("Holdings"), which is the direct parent of WMG Acquisition Corp. ("Acquisition Corp."). Acquisition Corp. is one of the world's major music entertainment companies. The Company and Holdings are holding companies that conduct substantially all of their business operations through their subsidiaries. The terms "we," "us," "our," "ours" and the "Company" refer collectively to Warner Music Group Corp. and its consolidated subsidiaries, unless the context refers only to Warner Music Group Corp. as a corporate entity. Acquisition of Warner Music Group by Access Industries Pursuant to the Agreement and Plan of Merger, dated as of May 6, 2011 (the "Merger Agreement"), by and among the Company, AI Entertainment Holdings LLC (formerly Airplanes Music LLC), a Delaware limited liability company ("Parent") and an affiliate of Access Industries, Inc., and Airplanes Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent ("Merger Sub"), on July 20, 2011 (the "Merger Closing Date"), Merger Sub merged with and into the Company with the Company surviving as a wholly owned subsidiary of Parent (the "Merger"). In connection with the Merger, the Company delisted its common stock from the New York Stock Exchange (the "NYSE"). Initial Public Offering On June 5, 2020, the Company went public again and completed an initial public offering ("IPO") of Class A common stock of the Company, par value $0.001 per share ("Class A Common Stock"). The Company listed its shares on the NASDAQ stock market under the ticker symbol "WMG." The offering consisted entirely of secondary shares sold by Access Industries, LLC (collectively with its affiliates, "Access") and certain related selling stockholders. Following the completion of the IPO, Access and its affiliates continue to hold all of the Class B common stock of the C

View Full Filing

View this 10-K filing on SEC EDGAR