Latest news with #Kyncl
Yahoo
7 days ago
- Business
- Yahoo
ADA President Cat Kreidich Leaving Warner Music
Cat Kreidich, president of Warner Music Group's music distribution arm ADA, is leaving the company, she confirmed in an internal memo to staff on Tuesday. Kreidich leaves after four years at the helm at ADA. WMG hasn't provided any details on Kreidich's successor. In a note to staff, WMG CEO Robert Kyncl said the company would have an update on ADA's leadership this week. In Kreidich's memo, reviewed by The Hollywood Reporter, she said that 'while I'm not ready to announce my next chapter, I look forward to sharing those plans when appropriate.' More from The Hollywood Reporter Universal Music Group Increasing Efforts on Music AI Patents 'Dolly: A True Original Musical' Preview Shows Are Now Playing in Nashville: Where to Get Sold-Out Tickets Online Mariah Carey Confirms Release Date For 16th Album 'Here For it All' 'While organizational change is a constant in our industry, I believe the foundation we've established will continue to serve independent artists effectively,' Kreidich wrote in her memo. 'We built an exceptional global team and expanded our global release volume, revitalized our brand identity, and developed a digital platform specifically designed for independent artists and labels within the Warner supply chain. We made strategic acquisitions like RSDL, which Warner will go on to use to help fuel their entire recorded music business.' Prior to ADA, Kreidich was an executive at The Orchard, Sony Music Group's distribution arm. During her tenure as ADA president, she'd closed distribution deals with Three Six Zero Recordings and Rostrum Records, as well as Kesha's famed distribution deal as the pop star decided to go independent. 'When I returned four years ago as an executive from The Orchard and Sony, I brought a vision to recapture that pioneering spirit and transform ADA to better compete in an increasingly crowded landscape of innovative music technology companies,' Kreidich wrote Tuesday. 'We didn't aspire to be the biggest distribution company, but rather the most valuable — valuable to our artist and label partners by offering expert guidance and measurable results, and valuable to Warner Music Group by helping build its ecosystem and reputation for supporting independent artists.' Kreidich's departure comes as distribution companies have become an area of increased attention across the industry. Back in December, Universal Music Group's Virgin Music Group announced a deal to acquire Downtown Music Group Holdings, the parent company to music distributors FUGA and CD Baby. (That deal is currently facing regulatory scrutiny from EU authorities, Reuters reported.) Concord, meanwhile, closed on a deal for indie distributor Stem back in March. Kreidich's departure is just the latest notable shift at WMG; earlier this month, Kyncl had announced a $300 million cost-saving initiative which included a $170 million cut through headcount reduction. 'Cat is a class act,' Kyncl wrote in his note Tuesday. 'A bold thinker and decisive leader, she's always focused on what's best for the indie community – its artists, its labels, and its spirit. Under her leadership, ADA has grown its relationships across the creative ecosystem, expanded its global reach, and strengthened its team and tech. She's helped guide us through some major shifts, staying agile, and delivering results.' Read Kreidich's memo below: To the ADA Team, I wanted you to hear this news directly from me: After four transformative years proving that Warner Music Group and ADA can truly be the best home for independent artists and labels, I have made the decision to leave the company. While organizational change is a constant in our industry, I believe the foundation we've established will continue to serve independent artists effectively. We built an exceptional global team and expanded our global release volume, revitalized our brand identity, and developed a digital platform specifically designed for independent artists and labels within the Warner supply chain. We made strategic acquisitions like RSDL, which Warner will go on to use to help fuel their entire recorded music business. This journey represents my second chapter with ADA. My first began during the early years of digital transformation, when I transitioned from a music tech startup. Having completed one of the first of its kind 'New Media' degrees at Emerson College, I was drawn to the possibilities of digital disruption and the independent music scene. When I came across ADA in the '00s, it was supporting breaking independent acts at an unprecedented scale, pioneering new approaches while music was being democratized globally through emerging digital platforms like iTunes, eMusic, and mobile entertainment. When I returned four years ago as an executive from The Orchard and Sony, I brought a vision to recapture that pioneering spirit and transform ADA to better compete in an increasingly crowded landscape of innovative music technology companies. We didn't aspire to be the biggest distribution company, but rather the most valuable—valuable to our artist and label partners by offering expert guidance and measurable results, and valuable to Warner Music Group by helping build its ecosystem and reputation for supporting independent artists. We believed that Warner Music Group and ADA were better together, each strengthening the other's capabilities and reach, and I think we've proven that out. As the company begins its next chapter, WMG is committed to continuing to expand the depth and range of ADA's services. To the ADA labels and artists who keep the heart of this industry beating: thank you for your dedication, creativity, and passion. I've been inspired by your relentless drive and your vision. You champion creativity, and prove that independence doesn't mean going it alone—it means doing it your way. You are shaping the future of music, and I remain passionate about the independent music community and will continue to champion its growing importance. While I'm not ready to announce my next chapter, I look forward to sharing those plans when appropriate — it will be consistent with the work I have been grateful to do for the last 20 years as an indie advocate. With gratitude and appreciation, CAT Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire Solve the daily Crossword
Yahoo
10-06-2025
- Business
- Yahoo
WMG Q1 Earnings Call: Lighter Release Slate and Market Headwinds Weigh on Results
Global music entertainment company Warner Music Group (NASDAQ:WMG) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $1.48 billion. Its non-GAAP profit of $0.12 per share was 58.4% below analysts' consensus estimates. Is now the time to buy WMG? Find out in our full research report (it's free). Revenue: $1.48 billion vs analyst estimates of $1.52 billion (flat year on year, 2.2% miss) Adjusted EPS: $0.12 vs analyst expectations of $0.28 (58.4% miss) Adjusted EBITDA: $303 million vs analyst estimates of $334.9 million (20.4% margin, 9.5% miss) Operating Margin: 11.3%, up from 8% in the same quarter last year Market Capitalization: $13.75 billion Warner Music Group's first quarter performance was shaped by a lighter release schedule and market share pressure in China, both of which management cited as central to the company's flat year-on-year sales. CEO Robert Kyncl pointed to a tough comparison in subscription streaming, noting last year's strong double-digit growth in that segment. He also highlighted the impact of a softer ad-supported streaming environment and lower concert promotion revenue, particularly in France. The company's focus on artist and songwriter development produced notable chart successes, but Kyncl acknowledged that these early creative wins have yet to fully offset the broader industry and release calendar challenges Warner Music Group faced during the quarter. Looking forward, Warner Music Group is prioritizing three areas: growing market share, increasing the value of music, and boosting efficiency to reinvest in music and technology. CEO Robert Kyncl explained that the company's strategy hinges on sharpening execution, especially as it confronts persistent headwinds in subscription streaming and ongoing volatility in key international markets. Management expects the current challenges, such as the lighter release slate and pressure in China, to persist for the remainder of the year. Kyncl emphasized continued investment in A&R (Artists and Repertoire), the launch of technology tools like the WMG Pulse app for artists, and ongoing efforts to finalize digital streaming platform (DSP) renewals as core drivers for future growth. Management attributed first quarter results to a combination of challenging year-over-year comparisons, evolving market dynamics in China, and continued investment in creative and technology initiatives. Release schedule timing: A lighter slate of new music releases impacted revenue growth, with several high-profile albums delayed or shifted out of the quarter, a factor CEO Robert Kyncl described as an 'ebb and flow' tied to artist timelines. China market headwinds: Warner Music Group faced market share losses in China, which management said reflected both increased competition and changes in local consumer behavior, with these trends expected to persist through the rest of the year. Streaming mix shift: Subscription streaming revenue grew modestly, but was held back by tough comparisons to last year's double-digit growth and softness in ad-supported streaming due to a weaker advertising environment. Artist investment and development: Management highlighted notable success stories from new and established artists, crediting increased A&R investment for Warner's strong presence on global music charts, but acknowledged these gains are not yet fully reflected in financial results. Technology and efficiency initiatives: The company launched WMG Pulse, a real-time data app for artists, and continued to pursue operational efficiencies, aiming to reinvest cost savings into music and tech to support long-term growth. Warner Music Group's outlook centers on improving execution, expanding market share, and navigating persistent challenges in subscription streaming and international markets. Ongoing A&R and tech investment: Management plans to increase spending on artist development and digital innovation, with CEO Robert Kyncl citing the rollout of the WMG Pulse app as an example of supporting artists and driving future engagement. Subscription streaming and DSP renewals: The company expects muted subscription streaming growth this year, with timing of digital streaming platform deal renewals and price increases likely to impact revenue more meaningfully in 2026 rather than the current year. International expansion and market risks: Leadership identified growth opportunities in emerging markets such as MENA (Middle East and North Africa), Nigeria, and India, but cautioned that market-specific headwinds, notably in China, could limit near-term gains despite ongoing investment and management changes in the region. In future quarters, the StockStory team will be monitoring (1) Warner Music Group's ability to execute a more consistent release schedule and reduce volatility in subscription streaming, (2) progress on digital streaming platform renewals and their eventual impact on revenue, and (3) momentum in key international markets, especially in China and other high-growth regions. The pace of technology adoption and efficiency gains will also be key indicators for the company's trajectory. Warner Music Group currently trades at a forward EV-to-EBITDA ratio of 9.1×. Should you double down or take your chips? Find out in our full research report (it's free). 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