Warner Music Group Corp (WMG) 2024 Q4 法說會逐字稿

Welcome to Warner Music Group's fourth quarter earnings call for the period ended September 30, 2024. At the request of Warner Music Group, today's call is being recorded for replay purposes, and if you object, you may disconnect at any time.

歡迎參加華納音樂集團截至 2024 年 9 月 30 日的第四季財報電話會議。應華納音樂集團的要求，今天的通話將被錄音以供重播，如果您反對，您可以隨時斷開連接。

Now I would like to turn today's call over to your host, Mr. Kareem Chin, Head of Investor Relations. You may begin.

現在我想把今天的電話轉給東道主投資者關係主管 Kareem Chin 先生。你可以開始了。

Good morning, everyone, and welcome to Warner Music Group's fiscal fourth quarter and full year earnings conference call. Please note that our earnings press release, earnings snapshot and Form 10-K are available on our website.

大家早安，歡迎參加華納音樂集團第四財季和全年收益電話會議。請注意，我們的收益新聞稿、收益快照和 10-K 表格可在我們的網站上取得。

On today's call, we have our CEO, Robert Kyncl; and our CFO, Bryan Castellani, who will take you through our results, and then we will answer your questions.

出席今天的電話會議的有我們的執行長 Robert Kyncl；我們的財務長 Bryan Castellani 將向您介紹我們的結果，然後我們將回答您的問題。

Before our prepared remarks, I'd like to refer you to the second slide of the earnings snapshot to remind you that this communication includes forward-looking statements that reflect the current views of Warner Music Group about future events and financial performance.

在我們準備好的發言之前，我想向您推薦收益快照的第二張投影片，以提醒您本通訊包含前瞻性陳述，反映了華納音樂集團目前對未來事件和財務表現的看法。

We plan to present certain non-GAAP results during this conference call and in our earnings snapshot slides and have provided schedules reconciling these results to our GAAP results in our earnings press release. All of these materials are posted on our website.

我們計劃在本次電話會議和收益快照幻燈片中展示某些非 GAAP 業績，並在收益新聞稿中提供將這些結果與 GAAP 業績進行協調的時間表。所有這些資料都發佈在我們的網站上。

Also, please note that all revenue figures and comparisons discussed today will be presented in constant currency unless otherwise noted. References to normalized revenue and adjusted OIBDA are adjusted for items that impact comparability. The details of these can be found in our filings.

另請注意，除非另有說明，今天討論的所有收入數據和比較都將以固定匯率表示。對於影響可比性的項目，對標準化收入和調整後的 OIBDA 的引用進行了調整。這些細節可以在我們的文件中找到。

All forward-looking statements are made as of today, and we disclaim any duty to update such statements. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them.

所有前瞻性陳述均截至今日作出，我們不承擔更新此類陳述的義務。我們的期望、信念和預測是真誠表達的，我們相信它們有合理的基礎。

However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that can cause actual results that differ materially from our expectations. Information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in our filings with the SEC.

然而，不能保證管理層的期望、信念和預測將會實現或實現。投資者不應依賴前瞻性陳述，因為它們受到各種風險、不確定性和其他因素的影響，這些因素可能導致實際結果與我們的預期有重大差異。有關可能導致實際結果與前瞻性陳述中的結果有重大差異的因素的資訊包含在我們向 SEC 提交的文件中。

And with that, I'll turn it over to Robert.

有了這個，我會把它交給羅伯特。

Thanks, Kareem, and good morning, everyone, and thank you for joining us. I'm pleased with our progress, both this quarter and this year, as we've demonstrated our strength and adaptability in a highly competitive market. Today, I'll provide more context on how we're positioning the company to sustain growth and to deliver even greater value to our artists, songwriters and shareholders.

謝謝卡里姆，大家早安，謝謝您加入我們。我對我們本季和今年的進展感到滿意，因為我們在競爭激烈的市場中展現了我們的實力和適應能力。今天，我將提供更多背景信息，說明我們如何定位公司以維持成長，並為我們的藝術家、歌曲作者和股東提供更大的價值。

First, let me give you a quick summary of our Q4 results. These are normalized or all previously disclosed nonrecurring items. We delivered an 11% jump in Recorded Music subscription streaming revenue, driven by strong releases and assisted by global subscriber growth and price increases. This was our fourth consecutive quarter of double-digit growth.

首先，讓我快速總結一下我們第四季的業績。這些是標準化的或所有先前披露的非經常性項目。在強勁發行的推動以及全球訂閱者成長和價格上漲的推動下，我們的錄製音樂訂閱串流媒體收入成長了 11%。這是我們連續第四個季度實現兩位數成長。

Total revenue was up 6% with Recorded Music up 6% and Music Publishing up 5%. And adjusted OIBDA grew 14% with margin increasing 150 basis points. Our robust Q4 results contributed to full year revenue and adjusted OIBDA growth of 7% and 11%, respectively.

總收入成長 6%，其中錄製音樂成長 6%，音樂出版成長 5%。調整後的 OIBDA 成長了 14%，利潤率增加了 150 個基點。我們強勁的第四季業績為全年營收和調整後的 OIBDA 成長做出了貢獻，分別為 7% 和 11%。

The year was highlighted by a Recorded Music subscription streaming growth of 12%. Our strategy is designed to enhance our ability to attract original artists and songwriters at every stage of their development. We help them realize their musical visions, cut through the noise, build sustainable careers and grow passionate and loyal fan bases.

這一年的亮點是串流媒體錄製音樂訂閱量增加了 12%。我們的策略旨在增強我們吸引處於各個發展階段的原創藝術家和詞曲作者的能力。我們幫助他們實現他們的音樂願景，消除噪音，建立可持續的職業生涯並培養熱情和忠誠的粉絲群。

This year, we reimagined our organization based on the principle that simplicity and focus drive higher intensity and impact. We've done a lot of important work, which has set us up for success today and will help us grow more profitably in the future.

今年，我們根據簡單和專注推動更高強度和影響力的原則重新構想了我們的組織。我們已經做了很多重要的工作，這些工作為我們今天的成功奠定了基礎，並將幫助我們在未來獲得更多的利潤。

We strengthened our presence in the US, the world's largest music market. We've shifted to a simpler and flatter organization structure to create faster and more direct channels on local talent to reach the global stage. And we've reorganized key business lines such as catalog and distribution in order to deliver greater global reach. We continue to find ways to strengthen the coordination across our Recorded Music and Music Publishing divisions. And we fixed a lot of foundational infrastructure issues that will now enable our technology team to be more offensively focused.

我們加強了在全球最大音樂市場美國的影響力。我們轉向更簡單、更扁平的組織結構，為本地人才創造更快、更直接的進入全球舞台的管道。我們也重組了目錄和分銷等關鍵業務線，以擴大全球影響力。我們繼續尋找方法來加強錄製音樂和音樂出版部門之間的協調。我們修復了許多基礎設施問題，這些問題現在將使我們的技術團隊更專注於進攻。

I'd like to dive a little deeper into these changes and tell you about some of the further steps we've taken this quarter. In the US, we have two flagship record label groups, Atlantic and Warner Records, important twin engines for growth. As part of our structural changes, we elevated (inaudible) to lead Atlantic.

我想更深入地探討這些變化，並告訴您我們本季採取的一些進一步措施。在美國，我們有兩個旗艦唱片公司：大西洋唱片公司和華納唱片公司，它們是重要的成長雙引擎。作為我們結構變革的一部分，我們提升（聽不清楚）領先大西洋。

While this kind of transition is never easy, this was a seamlessly executed handover. The team has delivered first-class results for priority projects while bringing in fresh ideas, onboarding dynamic executives and attracting exciting new artists with a digitally native approach. The Atlantic team will expand and diversify our artist roster and increase the volume of releases.

雖然這種轉變絕非易事，但這是一次無縫執行的移交。該團隊為優先項目提供了一流的成果，同時引入了新的想法、培養了充滿活力的高管並透過數位原生方法吸引了令人興奮的新藝術家。大西洋團隊將擴大我們的藝術家名單並使其多樣化，並增加發行量。

While all of this is going on, the label has kicked off our new fiscal year with a bang. APT, the collaboration between Korean superstar Rose, who we signed just a few months ago, and Bruno Mars immediately shot to number one on the Spotify and Billboard global charts. With this absolutely massive hit, Rose is the first female K-Pop solo artist to break into top 10 on Billboard Top 100.

在這一切發生的同時，品牌也轟然拉開了我們新財年的序幕。APT 是我們幾個月前剛簽約的韓國巨星 Rose 和 Bruno Mars 的合作作品，立即在 Spotify 和 Billboard 全球排行榜上名列第一。憑藉這張絕對巨大的成功，Rose 成為第一位闖入 Billboard Top 100 前十名的韓國流行音樂女歌手。

Bruno Mars is the biggest artist in the world. He has the largest reach of anyone with 130 million monthly listeners on Spotify. This week, he holds two top positions on the Billboard Global 200 chart with APT and Die with a Smile, his Grammy-nominated collaboration with Lady Gaga.

布魯諾·馬爾斯是世界上最偉大的藝術家。他是 Spotify 上影響力最大的人，每月有 1.3 億聽眾。本週，他憑藉《APT》和與 Lady Gaga 合作獲得格萊美提名的《Die with a Smile》在 Billboard 全球 200 強排行榜上佔據了兩個榜首位置。

Other Atlantic successes include Coldplay, landing their first number one album in a decade in the US, new albums from (inaudible) and The Marias, both of which continue to build strongly months after their release, and the impactful remix of Charli XCX Brat album Aldo and her 7 Grammy nominations, including Album of the Year and Record both together.

大西洋唱片的其他成功包括Coldplay 十年來在美國首張銷量第一的專輯、《（聽不清楚）》和The Marias 的新專輯（這兩張專輯在發行數月後繼續保持強勁勢頭），以及Charli XCX Brat 專輯的影響力混音版奧爾多和她的 7 項格萊美提名，其中包括年度專輯獎和唱片獎。

At the same time, the Atlantic team is bringing through the next generation of talent. Artemas reached 1 billion streams with his smash hit, I Like the Way You Kiss Me. (inaudible) Frank and Jordan received their first Grammy nominations. Jazz artists (inaudible) and singer-songwriter Sam Barber and rapper hunter are taking off. And competitive new signings include (inaudible) World and 1900 program.

與此同時，大西洋團隊正在培養下一代人才。阿特瑪斯憑藉他的熱門歌曲《我喜歡你吻我的方式》達到了 10 億次播放量。（聽不清楚）弗蘭克和喬丹首次獲得葛萊美提名。爵士藝人（聽不清楚）、創作歌手山姆巴伯（Sam Barber）和饒舌歌手亨特（Hunter）正在起飛。有競爭力的新簽約包括（聽不清楚）World 和 1900 計劃。

Elliott and his team have an impressive ability to discover an extraordinary talent across multiple genres and find fresh ways to help both established and emerging artist stand out from the crowd.

艾利奧特和他的團隊擁有令人印象深刻的能力，能夠發現跨多個流派的非凡人才，並找到新的方法來幫助知名藝術家和新興藝術家脫穎而出。

At Warner Records, the team's commitment to artist development is driving hits and training superstars. Under the leadership of [Erin] and Tom, the label's market share hit a new peak this year, reaching the number three position in the US for current releases.

在華納唱片公司，團隊致力於藝術家發展，推動熱門歌曲並培養超級巨星。在[Erin]和Tom的領導下，該品牌的市佔率今年再創新高，在美國目前發行的產品中排名第三。

They're hoping the likes of Teddy Swims, Benson Boone and (inaudible) and Zach Bryan have worldwide smashes with real staying power. For example, Teddy's number one single, Lose Control, has spent an impressive 44 weeks in the top 10 of the Billboard Hot 100. And (inaudible) carrier streams crossed the 9 billion mark at the ripe old age of 22. And it's great to see that label (inaudible) Teddy and Benson are up for best new artist at the Grammys.

他們希望泰迪·斯威姆斯（Teddy Swims）、本森·布恩（Benson Boone）以及（聽不清）和扎克·布萊恩（Zach Bryan）等人能夠在世界範圍內取得真正的持久力。例如，Teddy 的冠軍單曲《Lose Control》在 Billboard Hot 100 排行榜上連續 44 週保持在前 10 名，令人印象深刻。在 22 歲時，（聽不清楚）營運商流量突破了 90 億大關。很高興看到廠牌（聽不清楚）Teddy 和 Benson 角逐葛萊美獎最佳新人獎。

At the same time, Warner Records has been integral to the successful resurgence of icons like Green Day, Cher and Linkin Park, who have triumphantly returned with their first album in seven years, the first since the tragic death of lead singer, Chester Bennington.

同時，華納唱片公司在Green Day、Cher 和Linkin Park 等偶像的成功復興中發揮了不可或缺的作用，他們帶著七年來的第一張專輯凱旋歸來，這是自主唱查斯特·貝南頓(Chester Bennington) 不幸去世以來的第一張專輯。

The band's new album, From Zero, has the most pre-phase in WMG history, while the band embarked on a massive global tour. As I said many times, the power of new releases drives engagement around artist catalog and vice versa. We create a virtual cycle of consumption that fuels an uplift across the artist's entire value of work.

樂團的新專輯《From Zero》是 WMG 史上最前期的專輯，同時樂團開始了大規模的全球巡迴演出。正如我多次說過的，新版本的力量推動了藝術家目錄的參與，反之亦然。我們創造了一個虛擬的消費循環，推動藝術家整個作品價值的提升。

For example, when Linkin Park's new single, The Emptiness Machine, dropped in September and the band's new album was announced, their streams jumped by [0.5 billion] compared to the same quarter last year.

例如，當 Linkin Park 的新單曲《The Emptiness Machine》於 9 月發行並且樂團的新專輯發佈時，他們的流量與去年同期相比激增了 [5 億]。

I cannot stress enough how exhilarating it is to watch the creative success that both Warner Records and Atlantic are having. Through our shift to a flatter organizational structure, we've elevated our regional leadership across Latin America, EMEA and APAC. This has created faster, more direct channels for local talent to access the global stage.

看到華納唱片公司和大西洋唱片公司在創意上的成功，我怎麼強調都不為過。透過向扁平化組織結構的轉變，我們提升了在拉丁美洲、歐洲、中東和非洲和亞太地區的區域領導力。這為本地人才進入全球舞台創造了更快、更直接的管道。

This quarter, we continue to take steps that expand our presence in both mature and high-growth markets. In Japan, the second-largest music market, we appointed a new leadership duo, CEO, [Okada]; and Chairman, (inaudible).

本季度，我們繼續採取措施擴大我們在成熟和高成長市場的業務。在第二大音樂市場日本，我們任命了新的領導組合，執行長[岡田]；和主席，（聽不清楚）。

In Korea, we launched Amplify, a new label focused on English language music. In Benelux, we bought a leading indie label, Cloud 9 Recordings. In Africa, we completed our acquisition of [Africori], the region's leading distribution company. And Warner Music Latina joined forces with indie-label Street Map Records, an incubator of new Mexican talent.

在韓國，我們推出了 Amplify，一個專注於英語音樂的新廠牌。在比荷盧經濟聯盟，我們購買了領先的獨立唱片公司 Cloud 9 Recordings。在非洲，我們完成了對該地區領先的分銷公司[Africori]的收購。華納音樂拉丁公司 (Warner Music Latina) 與墨西哥新人孵化器獨立廠牌 Street Map Records 聯手。

Our focus on bringing a wide array of local talent is paying off. We have vibrant music from homegrown heroes, topping charts in many territories. We've had number one singles and albums by the likes of Soprano in France, Speed in Australia, (inaudible) in Germany, (inaudible) in Italy, Wu in Vietnam and King in India.

我們對引進廣泛的本地人才的關注正在取得回報。我們擁有來自本土英雄的充滿活力的音樂，在許多地區的排行榜上名列前茅。我們擁有法國的 Soprano、澳洲的 Speed、德國的（聽不清楚）、義大利的（聽不清楚）、越南的 Wu 和印度的 King 等排名第一的單曲和專輯。

We've also helped our global superstars reach new heights around the world. For example, Dua Lipa became the first female artist to have two albums exceed 13 billion streams each on Spotify.

我們也幫助我們的全球超級巨星在世界各地達到新的高度。例如，杜阿·利帕 (Dua Lipa) 成為第一位在 Spotify 上擁有兩張專輯均超過 130 億次播放量的女藝人。

Before we move on, I'd like to spotlight a territory we believe has huge global potential. With a population of 1.4 billion, India is more like a continent than a country. It has the fifth-largest GDP, but it's still only the 14 largest music market in the world.

在我們繼續之前，我想重點介紹一個我們認為具有巨大全球潛力的領域。印度擁有 14 億人口，與其說是一個國家，不如說是一個大陸。它的 GDP 排名第五，但仍僅是全球第 14 大音樂市場。

That gap will continue to close in the coming years. And as it does, India will become an increasingly influential global force in the music business. The company has already seen a significant increase in paid subscribers, which have increased by almost 40% since last year, but it still has less than 2% penetration.

這一差距將在未來幾年繼續縮小。如此一來，印度將成為音樂產業中日益具有影響力的全球力量。該公司的付費用戶數量已大幅增加，自去年以來增加了近 40%，但滲透率仍不足 2%。

A few weeks ago, I visited our offices in India and met with our team, artists and partners. And it was very inspiring. Since launching there in 2020, we partnered with the most important local players as well as buying stakes in and acquiring outright local music companies such as Positive, Vivo and Global Music Function.

幾週前，我參觀了我們在印度的辦公室，並會見了我們的團隊、藝術家和合作夥伴。這非常鼓舞人心。自 2020 年在該地區成立以來，我們與最重要的當地參與者合作，並購買了 Positive、Vivo 和 Global Music Function 等當地音樂公司的股份和收購。

Earlier this month, we made our latest move buying a stake in Skillbox, a leading ticketing and live events platform. We're helping Indian stars like Diljit Dosanjh and King reach new audiences while building loyal Indian fan bases for global talent such as Coldplay and Dua Lipa, who were both touring there in the coming months.

本月早些時候，我們採取了最新舉措，購買了領先的票務和現場活動平台 Skillbox 的股份。我們正在幫助迪爾吉特·多桑吉(Diljit Dosanjh) 和金(King) 等印度明星吸引新觀眾，同時為酷玩樂隊(Coldplay) 和杜阿·利帕(Dua Lipa) 等全球人才建立忠實的印度粉絲群，他們都將在未來幾個月進行印度巡迴演出。

As a result, we've seen an impressive revenue growth by over 100% in fiscal 2024. And most importantly, everything we're doing means we're well positioned to keep taking market share as India continues its explosive growth.

因此，我們在 2024 財年實現了超過 100% 的令人印象深刻的營收成長。最重要的是，我們所做的一切意味著，隨著印度持續爆炸性成長，我們已準備好繼續佔據市場份額。

In our catalog and distribution divisions, we've made changes that better align our expertise and resources with the growing global opportunities for artists. Where previously, we were operating on a country-by-country basis, now we've globalized our operations. Our dedicated centrally managed global teams enable us to share learnings, leverage best practices and deploy technology to find efficient ways of having greater worldwide impacts.

在我們的目錄和發行部門中，我們進行了一些變革，以便更好地將我們的專業知識和資源與藝術家日益增長的全球機會結合起來。以前，我們是逐國開展業務，現在我們已經實現了業務全球化。我們專門的集中管理的全球團隊使我們能夠分享經驗、利用最佳實踐並部署技術，以找到在全球範圍內產生更大影響的有效方法。

Turning to Music Publishing. The business continues to deliver impressive results. The 14% growth in total revenue on a normalized basis for the full year represents our fourth consecutive year of double-digit revenue growth. This was led by 19% streaming growth on a normalized basis.

轉向音樂出版。該業務持續取得令人矚目的業績。全年總收入在標準化基礎上成長 14%，這代表我們連續第四年實現兩位數收入成長。正常化基礎上，串流媒體成長 19%，帶動了這一成長。

We're contributing to global hits, strengthening our services and monetizing deeper into our catalog. Here are a few recent high points. 3 of the 5 Grammy nominees for Songwriter of the Year are Warner Chappell writers, Amy Allen, [Ray] and Jesse Alexander.

我們正在為全球熱門歌曲做出貢獻，加強我們的服務，並透過我們的目錄更深入地貨幣化。以下是近期的一些亮點。在格萊美年度歌曲作者提名的5 名提名者中，有3 名是華納·查普爾(Warner Chappell) 的作家、艾米·艾倫(Amy Allen)、[雷] 和傑西·亞歷山大(Jesse Alexander )。

Warner Chappell is number two for a second consecutive quarter on Billboard's top radio airplane rankings and rising to number two on the Hot 100 songs chart. With 25% market share, Warner Chappell is number one on the German half year chart, with its writers spending 18 of 26 weeks at number one on the singles chart.

華納·查佩爾 (Warner Chappell) 連續第二個季度在 Billboard 頂級廣播飛機排行榜上排名第二，並在熱門 100 首歌曲排行榜上升至第二位。華納·查佩爾 (Warner Chappell) 佔據了 25% 的市場份額，在德國半年排行榜上名列第一，其作家在 26 周中有 18 週位居單曲榜第一。

Despite all this success, we aren't resting on our laurels. And we've continued to invest into our future growth by forging new partnerships with [Analog Metaverse], the company founded by Grammy award-winning producer (inaudible); launching a venture with the widely respected British label, Effective Records; and appointing new leadership in high-growth territories such as (inaudible) in China and Sofia Han in Korea.

儘管取得了所有這些成功，我們並沒有滿足於現狀。我們透過與 [Analog Metaverse] 建立新的合作夥伴關係，繼續投資於我們的未來成長，該公司由葛萊美獎獲獎製作人（聽不清楚）創立；與廣受尊敬的英國唱片公司Effective Records 成立合資企業；並在高成長地區任命新的領導階層，例如中國（聽不清楚）和韓國的 Sofia Han。

We're very optimistic about the future at Warner Music Group. We have the right team and strategy to deliver long growth in a dynamic and thriving industry. We continue to build strong, mutually beneficial relationships with our partners to grow the value of music.

我們對華納音樂集團的未來非常樂觀。我們擁有合適的團隊和策略，可以在充滿活力和蓬勃發展的行業中實現長期成長。我們持續與合作夥伴建立強大、互利的關係，以提升音樂的價值。

With penetration in mature markets expected to increase from approximately 35% today to nearly 50% by 2030 and emerging markets going from single to low double digits over the same time frame, music subscriber growth should remain healthy for the years to come.

預計到2030 年，成熟市場的滲透率將從目前的約35% 增至近50%，而新興市場的滲透率將在同一時間段內從個位數升至較低的兩位數，因此未來幾年音樂用戶成長應保持健康。

For reference, in the US, cable TV penetration is a little over 50%. And the swap penetration is approaching 50%, highlighting that even in a mature market, music penetration is very low and has plenty of runway ahead.

作為參考，在美國，有線電視普及率略高於 50%。交換滲透率接近 50%，這凸顯出即使在成熟市場，音樂滲透率也非常低，並且還有很大的發展空間。

With both subscriber growth and opportunities for wholesale price increases, the formula for streaming growth is strong, and there is plenty of room for acceleration. Our focus on efficiency has freed up capital, enabling us to increase our investments in growth opportunities.

隨著用戶成長和批發價格上漲的機會，串流媒體成長的公式很強勁，並且有很大的加速空間。我們對效率的關注釋放了資本，使我們能夠增加對成長機會的投資。

As we previously promised, we've increased our A&R investment by approximately 11% in fiscal 2024 as we continue to sign new artists and songwriters and acquire IP and (inaudible), all while driving our digital transformation. As part of our investment strategy, we will consider bolt-on acquisitions that accelerate our progress while meeting our return thresholds.

正如我們之前承諾的那樣，我們將在 2024 財年將 A&R 投資增加約 11%，因為我們將繼續簽約新的藝術家和詞曲作者併收購 IP 和（聽不清），同時推動我們的數位轉型。作為我們投資策略的一部分，我們將考慮進行補強收購，以加速我們的進步，同時滿足我們的回報門檻。

In addition to these investment opportunities, I wanted to note that our Board has authorized a share repurchase program of up to $100 million. The program demonstrates our confidence in the value of our company and our optimism for the path ahead.

除了這些投資機會之外，我想指出的是，我們的董事會還批准了一項高達 1 億美元的股票回購計畫。該計劃體現了我們對公司價值的信心以及對未來道路的樂觀態度。

Our confidence is underpinned by the strong momentum we're getting into 2025 with an exciting release slate that includes projects from Rose, Dua Lipa, Teddy Swims, Jack Harlow, Benson Boone, Myke Towers, David, (inaudible) and more. We're excited by the opportunities ahead and look forward to delivering more culture-shaping music in 2025 and beyond.

進入2025 年，我們的信心得到了強勁動力的支撐，我們發布了一系列令人興奮的版本，其中包括Rose、Dua Lipa、Teddy Swims、Jack Harlow、Benson Boone、Myke Towers、David（聽不清楚）等人的項目。我們對未來的機會感到興奮，並期待在 2025 年及以後提供更多塑造文化的音樂。

And now over to you, Bryan.

現在輪到你了，布萊恩。

Thank you, Robert, and good morning, everyone. Before I get into our results, I want to remind everyone that growth rate comparisons will be in constant currency and where appropriate, I will reference normalized growth metrics.

謝謝羅伯特，大家早安。在公佈結果之前，我想提醒大家，成長率比較將以固定匯率計算，並且在適當的情況下，我將參考標準化成長指標。

There are items throughout the quarter and the year that affect comparability. The details and adjustments relating to these items can be found in our earnings press release.

整個季度和全年都有一些項目會影響可比性。與這些項目相關的詳細資訊和調整可以在我們的收益新聞稿中找到。

In Q4, total revenue grew 3%, and adjusted OIBDA increased 11% with a margin of 21.7%, an increase of 170 basis points over the prior year quarter. On a normalized basis, total revenue grew 6%, adjusted OIBDA increased 14% and margin increased 150 basis points.

第四季度，總營收成長 3%，調整後的 OIBDA 成長 11%，利潤率為 21.7%，比去年同期成長 170 個基點。在標準化基礎上，總營收成長 6%，調整後的 OIBDA 成長 14%，利潤率成長 150 個基點。

Recorded Music revenue increased 4% and grew 6% on a normalized basis, led by subscription streaming, which grew 11%, our fourth consecutive quarter of double-digit growth. Ad supported streaming declined by 6% as we lapped last year's TikTok renewal and filed the revenue impact of Meta's exit from premium music videos.

錄製音樂收入成長 4%，正常情況下成長 6%，其中訂閱串流媒體收入成長 11%，連續第四個季度實現兩位數成長。由於我們落後於去年的 TikTok 續訂，並提交了 Meta 退出優質音樂影片的收入影響，廣告支援的串流媒體下降了 6%。

Digital revenue increased 5%, driven by strong leases in the US and Japan, while artist services and expanded rights revenue increased 3% primarily due to higher concert promotion revenue in Japan. Licensing revenue increased 33%, driven by increased revenue from copyright infringement settlements primarily in the US and growth in broadcast use.

在美國和日本的強勁租賃推動下，數位收入成長了 5%，而藝術家服務和擴大版權收入成長了 3%，這主要是由於日本音樂會推廣收入的增加。授權收入成長了 33%，主要得益於美國版權侵權和解協議收入的增加以及廣播使用量的成長。

Recorded Music adjusted OIBDA increased 13% with a margin of 23.7%, an increase of 200 basis points. On a normalized basis, adjusted OIBDA increased 14%, and margin increased 160 basis points.

錄製音樂調整後的 OIBDA 成長 13%，利潤率為 23.7%，成長 200 個基點。在標準化基礎上，調整後的 OIBDA 成長了 14%，利潤率成長了 160 個基點。

Our Music Publishing results reflect the $17 million benefit from the CRB rate increase in the prior year quarter. Adjusted for that benefit, Music Publishing total revenue increased 5%, while digital increased 6% and streaming increased 5%.

我們的音樂出版業績反映了上一季 CRB 費率上漲帶來的 1700 萬美元收益。經過調整後，音樂出版總收入成長了 5%，數位收入成長了 6%，串流媒體收入成長了 5%。

These growth rates compare against the prior year quarter, which saw robust leading growth of 17% and reflect continued market and catalog growth as well as timing of payments. Link revenue increase 15%, reflecting an increase in copyright infringement settlements primarily in the US, while performance revenue decreased 2%. Mechanical revenue decreased 12% due to lower physical sales and timing of distributions.

這些成長率與去年同期相比，去年同期實現了 17% 的強勁領先成長，反映了市場和目錄的持續成長以及付款時間。連結收入成長 15%，反映出主要在美國的版權侵權和解金額增加，而表演收入下降 2%。由於實體銷售和分銷時間的減少，機械收入下降了 12%。

Music Publishing adjusted OIBDA grew 11% with a margin of 28.1%, an increase of 290 basis points. On a normalized basis, adjusted OIBDA increased 17%, and margin increased 280 basis points.

音樂出版調整後的 OIBDA 成長 11%，利潤率為 28.1%，成長 290 個基點。在標準化基礎上，調整後的 OIBDA 成長了 17%，利潤率成長了 280 個基點。

For the full year, total company revenue grew 7%, and adjusted OIBDA grew 16% with a margin of 22.3%, an increase of 180 basis points. On a normalized basis, total revenue grew 7%, and adjusted OIBDA grew 11% with a margin of 21.4%.

全年公司總營收成長 7%，調整後的 OIBDA 成長 16%，利潤率為 22.3%，成長 180 個基點。在標準化基礎上，總營收成長 7%，調整後的 OIBDA 成長 11%，利潤率為 21.4%。

Adjusted OIBDA margin increased 70 basis points as strong operating performance and savings from our restructuring programs were partially offset by increased investment in A&R as well as revenue mix.

調整後的 OIBDA 利潤率增加了 70 個基點，因為我們的重組計劃帶來的強勁營運績效和節省費用被 A&R 投資以及收入組合的增加部分抵消。

Recorded Music revenue increased 6%, and adjusted OIBDA grew 17% with margin expansion of 240 basis points. On a normalized basis, Recorded Music revenue increased 6% with adjusted OIBDA growth of 11% and margin expansion of 110 basis points. These results reflect streaming revenue growth of 10%, led by strength in subscription streaming, which grew 12%.

錄製音樂收入成長 6%，調整後的 OIBDA 成長 17%，利潤率擴大 240 個基點。在標準化基礎上，錄製音樂收入成長 6%，調整後的 OIBDA 成長 11%，利潤率擴張 110 個基點。這些結果反映了串流媒體收入成長了 10%，其中訂閱串流媒體成長了 12%。

Music Publishing revenue and adjusted OIBDA both increased 11%. On a normalized basis, Music Publishing revenue increased 14%, and adjusted OIBDA increased 13%.

音樂出版收入和調整後的 OIBDA 均成長 11%。在正常化的基礎上，音樂出版收入成長了 14%，調整後的 OIBDA 成長了 13%。

Q4 operating cash flow decreased 10% to $304 million from $338 million in the prior year quarter. The decrease was primarily driven by timing of working capital items, partially offset by the timing of severance payments.

第四季營運現金流從去年同期的 3.38 億美元下降 10% 至 3.04 億美元。減少的主要原因是營運資金項目的時間安排，部分被遣散費的時間安排所抵銷。

Free cash flow decreased 10% to $271 million from $300 million in the prior year quarter. For the full year, operating cash flow increased 10% to $754 million, and free cash flow increased 14% to $638 million.

自由現金流下降 10%，從去年同期的 3 億美元降至 2.71 億美元。全年營運現金流成長 10%，達到 7.54 億美元，自由現金流成長 14%，達到 6.38 億美元。

Operating cash flow conversion was 53% of adjusted OIBDA for the full year, in line with our target of 50% to 60% despite increased investment in A&R and shifts in deal timing. As of September 30, we had a cash balance of $694 million, total debt of $4 billion and net debt of $3.3 billion.

儘管增加了對 A&R 的投資以及交易時間的變化，全年營運現金流量轉換率為調整後 OIBDA 的 53%，符合我們 50% 至 60% 的目標。截至 9 月 30 日，我們的現金餘額為 6.94 億美元，總債務為 40 億美元，淨債務為 33 億美元。

Our weighted average cost of debt was 4.3%, and our nearest maturity date remains 2028. We continue to actively manage and improve our capital structure, most recently repricing our term loan in September, which has led to continued improvements in our debt ratings with both S&P and Fitch assigning us investment-grade ratings in August and September, respectively.

我們的加權平均債務成本為 4.3%，最近的到期日仍然是 2028 年。我們繼續積極管理和改善我們的資本結構，最近在 9 月對定期貸款進行了重新定價，這導致我們的債務評級持續改善，標準普爾和惠譽分別在 8 月和 9 月授予我們投資級評級。

I'd like to reiterate that as a result of actions taken in Q4 to reorganize our Recorded Music business, we now expect our restructuring plan to generate pretax cost savings of $260 million. And we continue to expect a significant majority of these savings to be achieved by the end of fiscal 2025.

我想重申，由於第四季度採取了重組我們的錄製音樂業務的行動，我們現在預計我們的重組計劃將節省 2.6 億美元的稅前成本。我們仍然預計到 2025 財年末將實現其中的大部分節省。

Looking ahead, our strong Q4 momentum in 2024 is carrying into 2025. Subscription streaming continues to see healthy underlying trends, and we expect high single-digit growth for fiscal 2025 and on a multiyear basis.

展望未來，我們 2024 年第四季的強勁勢頭將延續到 2025 年。訂閱串流媒體繼續呈現健康的基本趨勢，我們預計 2025 財年和多年後將出現高個位數成長。

Additionally, our goal remains to deliver margin expansion of 100 basis points and operating cash flow conversion of 50% to 60% of adjusted OIBDA on a multiyear basis. As a reminder, there are a number of previously disclosed items that will impact comparability in Q1.

此外，我們的目標仍然是在多年的基礎上實現利潤率擴張 100 個基點，營運現金流量轉換為調整後的 OIBDA 的 50% 至 60%。提醒一下，之前披露的許多項目將影響第一季的可比性。

Streaming growth will be impacted by a BMG digital distribution roll-off, the digital license renewal in the prior year and a lapping of Spotify pricing increases. Our digital distribution relationship with BMG that was planned to roll off by the end of fiscal '24 will now continue into fiscal '25. The revenue impact in Q1 is approximately $16 million versus the prior year quarter. And the digital license renewal with one of our international partners was $27 million in the prior year quarter.

串流媒體成長將受到 BMG 數位發行縮減、上一年數位授權續約以及 Spotify 定價上漲的影響。我們與 BMG 的數位發行關係原計劃在 24 財年末結束，現在將持續到 25 財年。與去年同期相比，第一季的營收影響約為 1,600 萬美元。去年同期，我們與一個國際合作夥伴續訂的數位授權金額為 2,700 萬美元。

Our physical distribution relationship with BMG has largely rolled off. We expect there to be an unfavorable revenue impact of $15 million to $20 million in Q1.

我們與 BMG 的物流關係已基本解除。我們預計第一季的營收將受到 1,500 萬至 2,000 萬美元的不利影響。

Licensing revenue will reflect the $68 million catalog licensing agreement extension we disclosed in Q1 '24. Finally, artist services revenue will reflect the exit of our owned and operated media properties, which contributed $20 million in the prior year quarter.

授權收入將反映我們在 24 年第一季披露的 6,800 萬美元的目錄授權協議延期。最後，藝術家服務收入將反映我們擁有和經營的媒體資產的退出，該資產在去年同期貢獻了 2000 萬美元。

The music industry remains healthy. And we continue to see positive subscriber growth and penetration trends as well as opportunities for wholesale pricing growth. We are excited about the slate this year and look forward to delivering great music. The momentum in the business is strong, and we are positioning ourselves for long-term success.

音樂產業依然健康。我們繼續看到積極的用戶成長和滲透趨勢以及批發定價成長的機會。我們對今年的石板感到興奮，並期待提供精彩的音樂。業務勢頭強勁，我們正為長期成功做好準備。

Thank you for joining us today. We'll now open the call for questions.

感謝您今天加入我們。我們現在開始提問。

(Operator Instructions)

（操作員說明）

Kutgun Maral, Evercore ISI.

Kutgun Maral，Evercore ISI。

I just had a high-level one on the broader music industry. Looking at the labels specifically, the industry construct remains very attractive. There's healthy competition for sure, but the big three still drive roughly two-third of global Recorded Music revenue and are must-haves for any platform. And structurally, you continue to see improvements with DSP price increases and the shift to artist-centric royalty models. So a very healthy and encouraging backdrop.

我剛剛就更廣泛的音樂產業進行了一場高水準的演講。具體來看標籤，產業結構仍然非常有吸引力。肯定存在良性競爭，但三巨頭仍然佔據全球錄製音樂收入的約三分之二，並且是任何平台的必備品。從結構上看，您將繼續看到 DSP 價格上漲以及轉向以藝術家為中心的版稅模式的改善。這是一個非常健康和令人鼓舞的背景。

On the other hand, I think as investors have looked to the other parts of the ecosystem, a lot of value hasn't (inaudible) accrued to the DSPs and even certain live entertainment companies in part because of a view that they're at the forefront of capturing a greater share of wallet from consumers in monetizing the growing power of music.

另一方面，我認為，當投資者關註生態系統的其他部分時，DSP 甚至某些現場娛樂公司並沒有（聽不清楚）獲得很多價值，部分原因是他們認為自己處於劣勢。力量貨幣化，從消費者手中奪取更大份額的前沿。

I'm not saying that those companies are undeserving of Wall Street's optimism, but it seems like the perceived potential for the labels has lagged despite their crucial role in everything. So I don't know if it's changing the dynamics with the DSPs and ad-supported tiers or a reimagined approach to superfans.

我並不是說這些公司不值得華爾街的樂觀，但儘管這些品牌在所有方面都發揮著至關重要的作用，但它們的潛力似乎已經落後。所以我不知道它是否正在改變 DSP 和廣告支援層的動態，或者是重新構想的超級粉絲方法。

But can you share your views on what the biggest opportunities for WMG are over the next few years to better participate in what seems to be a very robust growth profile for the overall music industry?

但您能否分享一下您對 WMG 未來幾年最大的機會是什麼的看法，以更好地參與整個音樂產業似乎非常強勁的成長態勢？

Sure. Thank you. Thanks for the question. So I see this in two different buckets. But number one is the obvious moves. And in those, I'm focused on two big ones, which is reduction of discounts on (inaudible) class and more frequent PSM escalators.

當然。謝謝。謝謝你的提問。所以我在兩個不同的桶子裡看到了這一點。但第一是明顯的舉措。其中，我重點關注兩大問題，即（聽不清楚）艙位折扣的減少和 PSM 自動扶梯的頻繁使用。

It's very simple. It comes down to these two levers. And there are very obvious moves for the industry for a company like WMG, and they are not a zero-sum move between us and the DSPs. They can actually be in concert with each other.

這很簡單。歸結為這兩個槓桿。對於像 WMG 這樣的公司來說，產業有非常明顯的舉措，而且它們不是我們和 DSP 之間的零和舉措。他們實際上可以彼此協調一致。

And then the second bucket is in more innovations, and that's where sort of a superfan tier like the music pro that's been discussed a lot or other SKUs, some of which may include ads, et cetera, just innovation around SKUs and audience segmentation, those are also potential upside for all of us.

第二個桶子是更多的創新，這就是超級粉絲層，例如已經討論了很多的音樂專業人士或其他 SKU，其中一些可能包括廣告等，只是圍繞 SKU 和受眾細分的創新，這些對我們所有人來說也是潛在的好處。

My focus is in the order that I described, which is obvious moves first, those two specifically and then the innovations. And all of these things would be sort of incremental to the glide path that you guys see for the industry.

我的重點是按照我所描述的順序，首先是明顯的舉措，然後是這兩個具體舉措，然後是創新。所有這些事情都將是你們看到的產業滑行路徑的增量。

Benjamin Swinburne, Morgan Stanley.

班傑明‧斯溫伯恩，摩根士丹利。

I guess I had two questions. Robert, you gave us some helpful context around the management changes. I'm wondering if you could talk a little bit about what is -- what worked and is working so well at 10K, Elliott's label that you guys acquired last year, that is or isn't applicable to the larger business of Atlantic?

我想我有兩個問題。羅伯特，您為我們提供了有關管理層變動的一些有用的背景資訊。我想知道您是否可以談談您去年收購的 Elliott 品牌 10K 中什麼是有效的以及目前效果如此之好，這是否適用於 Atlantic 的更大業務？

I'm thinking about things like artist discovery, marketing contracts, anything that you think we should be thinking about as that -- he steps into obviously or has stepped into a much larger, broader and important role? And how this new structure, flatter structure translates into faster growth for the company, which maybe you're already seeing, but I would love to get some more color on all of that.

我正在考慮諸如藝術家發現、行銷合約之類的事情，任何你認為我們應該考慮的事情——他顯然已經進入了或已經進入了一個更大、更廣泛和重要的角色？這種新的、更扁平的結構如何轉化為公司更快的成長，也許你已經看到了，但我很想對這一切有更多的了解。

And then you and Bryan both mentioned opportunities in wholesale pricing in your prepared remarks. So I figure I might as well follow-up. I think you're in the midst of your Spotify renewal right now. So I thought maybe you could talk a little bit about your optimism to what seems like a pretty substantial change, maybe not, but it seems like a substantial change to the way retail wholesale economics work?

然後你和布萊恩在準備好的發言中都提到了批發定價的機會。所以我想我不妨跟進一下。我認為您現在正處於 Spotify 續訂階段。所以我想也許你可以談談你對看似相當重大的變化的樂觀態度，也許不是，但這似乎是零售批發經濟運作方式的重大變化？

Sounds good. Thank you, Ben. All right. So let me start with 10K and Elliott. So when you think about the music industry today, there are obviously lots of different independent music companies, many of whom plan to do many things really, really well.

聽起來不錯。謝謝你，本。好的。讓我從 10K 和 Elliott 開始。因此，當你思考當今的音樂產業時，顯然有很多不同的獨立音樂公司，其中許多公司計劃將很多事情做得非常非常好。

I would say you have to take everything with a great grain of salt. But one of those that surely did that was 10K. I know that's a fact from the numbers that both they had prior and the numbers that they have delivered in the first year under the WMG umbrella, which was a phenomenal growth, both on top line and bottom line.

我想說的是，你必須對一切保持保留態度。但確實做到了這一點的其中之一是 10K。從他們之前的數據以及他們在 WMG 旗下第一年交付的數據來看，我知道這是一個事實，無論是在營收還是利潤上，這都是驚人的成長。

The skill set that they bring, and it's not just Elliott, also his team, the skill set that they bring is being very digitally native. Today, a vast majority of our revenue is coming through streaming. Promotion mostly happens online. You must be digitally native if you want to succeed today and in the future in the music industry. And that is important to the DNA of the company, and they have brought that.

他們帶來的技能組合，不只是艾利歐特，還有他的團隊，他們帶來的技能組合非常數位化。如今，我們的絕大部分收入來自串流媒體。促銷多發生在網路上。如果您想在今天和未來的音樂產業中取得成功，您必須是數位原生代。這對公司的 DNA 很重要，他們也帶來了這一點。

The other part that they bring is intensity. When you start a company of that size, you start from scratch, (inaudible). You have to be incredibly intense about everything that you do. And I love that about them. You also create strong points of view on various decisions. And I can tell you that all of these things, they -- developing artists, aspiring artists as well as stars. Everybody wants to have broad reach of hits, have loyal fan bases and obviously then monetize it really well.

他們帶來的另一部分是強度。當你創辦一家這麼規模的公司時，你是從頭開始，（聽不清楚）。你必須對你所做的每一件事都非常熱情。我喜歡他們這一點。您也可以對各種決策提出強烈的觀點。我可以告訴你，所有這些，他們——正在發展的藝術家、有抱負的藝術家以及明星。每個人都希望擁有廣泛的點擊率，擁有忠實的粉絲群，然後顯然可以很好地貨幣化。

But if you're somebody who's just starting, you need to build an audience. If you're a superstar, you want to keep the audience. Either way, it comes to that. So this digital-first mindset from 10K has translated really well into the company. And it also goes to their talent development. I name two artists who are [Boris Bank] and Jordan who are for the first (inaudible). And it's amazing to see that. So that's one.

但如果你是剛起步的人，你就需要建立觀眾。如果你是超級明星，你想留住觀眾。不管怎樣，事情都到了這一步。因此，10K 的數位優先理念已經很好地融入了公司。這也有利於他們的人才發展。我列出了兩位藝術家，他們是[鮑里斯·班克]和喬丹，他們是第一位（聽不清楚）。看到這一點真是令人驚奇。這就是其中之一。

At the same time, you have to be really great at working well in a large organization like WMG, means you have a flexible mindset and work well with others. And Elliott does that incredibly well. So I'm really, really pleased with how things are going.

同時，您必須非常擅長在像 WMG 這樣的大型組織中工作，這意味著您擁有靈活的思維方式並能夠與他人合作良好。艾略特在這方面做得非常好。所以我對事情的進展感到非常非常滿意。

On your wholesale question, I think the way you asked the question was that it's not how normally things work. I actually think that's exactly how things work in wholesale, which is wholesale prices generally go up, and it happens in all industries. It may not happen that way in music in the past, but it is how it works in 99% of industries. So we're just trying to align with the way the world works.

關於你的整體問題，我認為你提出問題的方式是事情不正常。事實上，我認為這正是批發業的運作方式，批發價格通常會上漲，而這種情況發生在所有行業。過去音樂領域可能不會出現這種情況，但 99% 的行業都是如此。所以我們只是試著與世界的運作方式保持一致。

And Ben, I would chime in just on the overall subscription streaming growth. Again, the backdrop is healthy. We continue to see those catalysts, whether in subscriber growth, pricing optimization as well as share. And our view is that subscribers, there's been 70 million to 80 million new subs brought into the ecosystem a year of late. We continue to see that being the vast driver.

本，我只想談談串流媒體訂閱的整體成長。再次，背景是健康的。我們繼續看到這些催化劑，無論是在用戶成長、定價優化還是份額方面。我們的觀點是，一年後，訂閱者生態系統中新增了 7,000 萬至 8,000 萬訂閱者。我們仍然認為這是巨大的推動力。

Take that as 70%, if not more, with, as Robert said, the glide path on pricing is, I would say, modest and to the extent wholesale gains are had, those would provide upside to that. And then, of course, on share, we're pleased on the progress we've made. And we have momentum with '24 releases and overall roster and catalog and that carrying into '25. So again, encouraged there about all the underlying trends, which we think have upside to the extent pricing optimizes sooner.

將其視為 70%（如果不是更多），正如羅伯特所說，定價的下滑路徑是適度的，並且在獲得批發收益的情況下，這些將提供上行空間。當然，在分享方面，我們對所取得的進展感到高興。我們在 24 年的發行、整體名單和目錄以及進入 25 年的發展勢頭良好。因此，再次鼓勵所有潛在趨勢，我們認為只要定價更快優化，這些趨勢就有上行空間。

Jason Bazinet, Citi.

傑森·巴齊內特，花旗銀行。

Your commentary's helpful and bullish, I guess, in terms of subscriber growth and potential trends on wholesale pricing and potentially market share. I just wanted to ask how likely do you think it might be that there's a headwind embedded in those three tailwinds you talked about just from geographic mix, meaning the sub growth comes from more emerging markets as opposed to developed markets? Is that a risk that you think investors should be focused on? Or do you not really think that, that could present itself as a headwind?

我想，就訂戶成長以及批發定價和潛在市場份額的潛在趨勢而言，您的評論是有幫助和樂觀的。我只是想問，您認為您所談到的這三個順風中存在逆風的可能性有多大，這只是來自地理組合，這意味著次級增長來自更多的新興市場而不是發達市場？您認為投資人應該關注這項風險嗎？或者你真的不認為這可能會變成一種逆風嗎？

So I won't answer what you should do. I'll just tell you what I do. And then I think you guys extrapolate from that. I -- so I studied the video industry a lot, right, whether it's MVPDs, right, TV, film, cable, satellite television or subscription video on demand, SVOD, right? Because they're extremely adjacent to what we do.

所以我不會回答你該做什麼。我就告訴你我是做什麼的。然後我想你們可以據此推斷。我——所以我對視頻行業進行了很多研究，對吧，無論是 MVPD，對吧，電視、電影、有線電視、衛星電視還是訂閱視訊點播、SVOD，對吧？因為它們與我們所做的事情非常接近。

And simply studying the penetration, I kind of -- like take two markets, two extremely opposite markets, right, United States and India. One is the largest market in revenue. The other one is the largest market in users in the world, right?

只是研究滲透率，我有點像兩個市場，兩個截然不同的市場，對吧，美國和印度。一是收入最大的市場。另外一個是全球用戶量最大的市場，對吧？

And -- but low ARPU, obviously. United States, penetration is somewhere around 30%, but television is around 50%, SVOD is approaching 50% with lots of different subscription services, obviously, investing and growing. There's a lot more to grow in the United States for music.

而且，顯然，ARPU 值較低。在美國，滲透率約為 30%，但電視約為 50%，SVOD 接近 50%，有許多不同的訂閱服務，顯然正在投資和成長。美國的音樂還有很多值得發展的地方。

And by the way, we're a lower-priced product that gives you everything, and it's like extremely fluid and easy. So I view it that way. And then in the -- I almost don't want to call it emerging markets because they're really high-growth markets, but the penetration there is extremely low today. And obviously, ARPU is low.

順便說一句，我們是一款價格較低的產品，可以為您提供一切，而且非常流暢和簡單。所以我是這麼看的。然後在那裡——我幾乎不想稱其為新興市場，因為它們確實是高成長市場，但今天那裡的滲透率極低。顯然，ARPU 很低。

But what we will see over there is we're betting on countries that have forward look -- that A, have higher GDPs now, but also have movements in GDPs out in the future because higher GDP will translate into more ad revenue, and it's because that's a function of GDP. And it will translate into better conversion rates in subscriptions.

但我們將看到的是，我們押注於那些具有前瞻性的國家——A，現在擁有更高的GDP，但未來的GDP也有變化，因為更高的GDP將轉化為更多的廣告收入，而且它是因為這是GDP的函數。這將轉化為更好的訂閱轉換率。

So in India, it's an extremely low number of subscribers today in total. I think it's about 15 million. And on television, there's more than 100 million households in India. So there's a lot of room to grow. And so I kind of look at those two bookends, and that is obviously gradation in between by market, then we just study each of those markets. So this is what's giving us confidence.

因此，目前印度的訂戶總數非常少。我認為大約是1500萬。在電視上，印度有一億多個家庭。所以還有很大的成長空間。所以我會看這兩個書擋，這顯然是按市場劃分的，然後我們只研究每個市場。這就是給我們信心的原因。

Benjamin Black, Deutsche Bank.

班傑明·布萊克，德意志銀行。

Last year, a couple of DSPs moved to an artist-centric model. I'm just curious if you could give us an update on how that impacted your streaming growth. And I guess, relatedly, do you think they're doing enough? What else could they do? And what about the other larger DSPs? Why haven't all adopted an artist-centric model at this point?

去年，一些 DSP 轉向了以藝術家為中心的模式。我只是好奇您能否向我們介紹一下這對您的串流媒體成長有何影響的最新情況。我想，與此相關的是，你認為他們做得夠嗎？他們還能做什麼？那麼其他較大的 DSP 又如何呢？為什麼目前還沒有採用以藝術家為中心的模式？

And then just a follow-up to (inaudible). You mentioned a large discount embedded in these offerings. I guess similar to Ben's earlier question in your Spotify renewal, is this something that you're addressing, have been able to accelerate progress here?

然後只是後續行動（聽不清楚）。您提到這些產品包含很大的折扣。我想類似於 Ben 在 Spotify 續約中提出的問題，您正在解決的問題是否能夠加快進展？

Sure. So let me just quickly comment on the second. I can't comment on any of our discussions with our partners. So that would not be fair to anyone, whether you're on the call or to our partners. So I'll decline there.

當然。那麼讓我快速評論一下第二個。我無法對我們與合作夥伴的任何討論發表評論。因此，這對任何人都不公平，無論您是接聽電話的人還是我們的合作夥伴。所以我會拒絕那裡。

But on the artist-centric model, we're very consistent from day one even before it started in saying that it is an important initiative. It's -- we're glad that we have a foot in the door on that. And it's something that we obviously have to continually roll out and not keep it static, but it has to keep on evolving with the growing scale of the industry, right?

但對於以藝術家為中心的模式，我們從第一天起就非常一致，甚至在它開始之前就說這是一項重要的舉措。我們很高興我們已經邁出了這一步。顯然，我們必須不斷推出它，而不是保持靜止，但它必須隨著行業規模的不斷增長而不斷發展，對嗎？

So I don't view this as a one and done. I view this as one and done as in foot in the door, and then you start expanding it. And -- but doing it together with our partners, obviously, right? So this is a collaborative effort.

所以我不認為這已經完成。我認為這是一個，就像邁進門一樣，然後你開始擴展它。而且——但顯然是與我們的合作夥伴一起做的，對吧？所以這是一項協作努力。

So I think the -- you will continue to see impact from it. Every single year, that will be increasing. But it's hard to like forward forecast exactly what that is, right, because it's obviously a coordination across multiple different distribution partners at the same time.

所以我認為——你將繼續看到它的影響。每年，這個數字都會增加。但很難確切地說前瞻性預測是什麼，對吧，因為它顯然是同時跨多個不同的分銷合作夥伴進行協調。

And it's never easy, but it is exactly what we're working on. It is the right thing for artists and songwriters. And they understand it, they appreciate it. And our partners also think it's a good idea. So it's just finding the right balance for all of us.

這絕非易事，但這正是我們正在努力的方向。對於藝術家和詞曲作者來說，這是正確的事情。他們理解這一點，他們欣賞這一點。我們的合作夥伴也認為這是一個好主意。所以這只是為我們所有人找到適當的平衡。

David Karnovsky, JPMorgan.

大衛卡諾夫斯基，摩根大通。

Just on ad-supported streaming, I want to see if you could speak to trends there, just shaping out the impact of renewals or items like premium video with Meta. How should we kind of think about this line going forward?

就廣告支援的串流媒體而言，我想看看您是否可以談談那裡的趨勢，只是透過 Meta 來確定續訂或優質影片等項目的影響。我們該如何思考這條線的未來？

And then, Bryan, thanks for the multiyear outlook on margins, just kind of bringing it to '25. I don't know if you could kind of walk through specific drivers or any phasing we could think through the year.

然後，布萊恩，感謝您對利潤率的多年展望，只是將其帶到了 25 年。我不知道您是否可以介紹一下具體的驅動因素或我們今年可以考慮的任何階段。

Sure. On the ad supported, the underlying traditional, what I shouldn't say is traditional ad supported because again, it's streaming and digital advertising, which is the right sector be in. That continues to see some of the macro trends you've seen across others.

當然。在支援的廣告方面，底層的傳統廣告，我不應該說是支持傳統廣告，因為同樣，它是串流媒體和數位廣告，這是正確的領域。這將繼續看到您在其他方面看到的一些宏觀趨勢。

We see that kind of your low mid-single digits at the moment. The emerging within ad supported, as we had said earlier, we are lapping our TikTok deal. And also we have done our Meta renewal, which we're pleased with. We were -- that underlying deal continues to grow and expand. As you know, they exited the premium music video licensing. And so generally, the underlying core advertising there is stable and growing.

我們目前看到的是這種中低個位數的情況。正如我們之前所說，新興的廣告支持我們正在完成我們的 TikTok 交易。我們也完成了元更新，對此我們感到很滿意。我們——基礎交易持續成長和擴大。如您所知，他們退出了優質音樂視頻許可。因此，整體而言，潛在的核心廣告是穩定且不斷成長的。

The second part of your question on margin for '25, we continue to be committed to 100 basis points a year over a multiyear period. There's always going to be quarter-to-quarter timing where -- whether the timing of releases and marketing, how savings and when they're redeployed. But generally, we continue to see this opportunity as our business shifts more and more digital and streaming and is diversified around the world by artists, genres and so forth that continues to be a driver of our margin growth.

關於 25 年保證金問題的第二部分，我們繼續承諾在多年期間每年保持 100 個基點。總是會有季度與季度的時間表——無論是發布和行銷的時間、如何節省以及何時重新部署。但總的來說，隨著我們的業務越來越數位化和串流媒體化，並在世界各地透過藝術家、流派等實現多元化，我們繼續看到這個機會，這仍然是我們利潤成長的驅動力。

Devin Brisco, Wolfe Research.

德文·布里斯科，沃爾夫研究中心。

Superfan tier has been a hot topic this year, and I think everyone is anxiously awaiting what that product launch will look like. Are there any details you can share about the potential features and monetization avenues you'd like to see introduced in that product launch?

超級粉絲等級一直是今年的熱門話題，我想每個人都在焦急地等待該產品的發布會是什麼樣子。您是否可以分享有關您希望在該產品發布中引入的潛在功能和盈利途徑的詳細資訊？

Is that tier something you expect all the DSPs to have potentially globally, maybe with slightly different variations? And given that these tiers will likely have a variety of features, how should we think about how you'll get paid? Will it be similar to existing tiers today sort of a rev split model based on engagement, where there'll be revenue streams on top of that? Anything you could share on that would be appreciated.

您是否期望所有 DSP 都可能在全球範圍內擁有該級別，也許略有不同？鑑於這些等級可能具有多種功能，我們應該如何考慮您將如何獲得報酬？它會類似於現今現有的等級，一種基於參與度的所得分配模型，在此基礎上還會有收入流嗎？您能分享的任何內容將不勝感激。

Sure. Can I just clarify quickly? You cut off a little bit in the beginning. Were you asking about music pro?

當然。我可以快速澄清一下嗎？你一開始就剪掉了一點。你問的是音樂專業嗎？

I was asking about -- sorry, I was asking about superfan tiers and what you'd like to see in that product and the opportunity there?

我問的是——抱歉，我問的是超級粉絲等級，以及您希望在該產品中看到什麼以及那裡的機會？

Sure. So I'll -- again, it's a little bit tough for me to answer on behalf of the retailer. It is ultimately their platform and their features. Obviously, we have to work together. But I know they declined to answer it specifically, and so I can't do that on their behalf.

當然。所以我再說一遍，代表零售商回答對我來說有點困難。最終是他們的平台和功能。顯然，我們必須共同努力。但我知道他們拒絕具體回答，所以我不能代表他們這樣做。

But the -- in general, if you think about music, it is monetized exactly the same way whether you're superfan or not, right, on subscription streaming. So it's obviously an undervalued -- it's an underexploited opportunity for all of us. And it's -- if you look at the gaming industry, 80% of revenue comes from 20% of users. There are all these obvious dynamics, but that's more of a transactional model, right, rather than a subscription model.

但總的來說，如果你考慮音樂，無論你是否是超級粉絲，它的貨幣化方式都完全相同，對吧，在訂閱串流媒體上。因此，這顯然是一個被低估的機會——對我們所有人來說，這是一個未被充分利用的機會。如果你看看遊戲產業，你會發現 80% 的收入來自 20% 的用戶。有所有這些明顯的動態，但這更多的是交易模型，對吧，而不是訂閱模型。

So I think adding features that drive engagement give people higher quality, more interactions, all of that, like learning from the gaming industry is a good place to go. And I really don't want to comment on behalf of our partners about their features. But we're engaged in all the conversations deeply. We're bullish about it. We think it's a great opportunity, both for the retailers -- sorry, for the DSPs as well as for us. And it's yet another one of those catalysts of increased growth that none of us has figured into our business.

因此，我認為添加提高參與度的功能可以讓人們獲得更高的品質、更多的互動，所有這些，就像向遊戲產業學習是一個不錯的選擇。我真的不想代表我們的合作夥伴評論他們的功能。但我們深入參與了所有對話。我們對此持樂觀態度。我們認為這對零售商來說都是一個很好的機會——抱歉，對於 DSP 以及我們來說都是如此。這是我們業務成長的另一個催化劑，但我們沒有人考慮到這一點。

James Heaney, Jefferies.

詹姆斯·希尼，杰弗里斯。

Great. Could you just talk about the drivers of the high single-digit growth in subscription streaming on a multiyear basis? What gives you that conviction? And how much of that is coming from ARPU versus subscription?

偉大的。您能否談談多年來訂閱串流媒體高個位數成長的驅動因素？是什麼給了你這樣的信念？其中有多少是來自 ARPU 與訂閱？

Yeah. I'll go back to those three catalysts that it is subscribers, price and share. And on subscribers, as I said, we continue to see rising penetrations around the world.

是的。我將回到這三個催化劑，即訂閱者、價格和份額。至於訂閱者，正如我所說，我們繼續看到世界各地的滲透率不斷上升。

I think you have roughly maybe one-third of penetration in developed markets that's projected to go to almost half by the end of the decade in emerging markets, where massive populations -- you're in the mid to maybe high single digits going to low to mid-double digits over the next four, five years. So those continue to be a vast majority of what we see as the growth driver over the multiyear period, that subscriber growth.

我認為，已開發市場的滲透率大約有三分之一，預計到本世紀末，新興市場的滲透率將達到近一半，因為新興市場人口眾多，滲透率處於中高個位數到低個位數之間。因此，這些仍然是我們認為多年期間成長動力的絕大多數，即用戶成長。

Having said that, there's, I think, modest assumptions in industry projections for pricing. We see opportunity there on catalysts, whether it is from things like audience segmentation and superfans and raising ARPU across DSPs as well as wholesale pricing optimization, as Robert talked about the -- improving on the family plan and multiuser discounts as well as the per subscriber minimums and trying to move the industry more progressively on the wholesale side knowing full well that in many of these bundles, music, as we like to say, is an anchor tenant driving high engagement.

話雖如此，我認為產業定價預測中存在適度的假設。我們看到了催化劑上的機會，無論是受眾細分和超級粉絲等，還是提高 DSP 上的 ARPU 以及批發定價優化，正如羅伯特談到的那樣——改進家庭計劃和多用戶折扣以及每個訂戶並試圖在批發方面更積極地推動行業發展，因為我們深知，在許多捆綁包中，音樂，正如我們想說的，是推動高參與度的主要租戶。

And then on share, again, we -- the changes we have made, we think, improve our volume, velocity, diversity of artist development as well as our continuing to scour the market as we always do for bolt-on acquisitions, whether those are IP catalog or can help us on the digital side in terms of quickening our initiatives. So a few things there that give us the optimism over the multiyear period for the high single-digit subscription growth.

然後，在分享方面，我們認為，我們所做的改變提高了我們藝術家發展的數量、速度和多樣性，以及我們繼續搜尋市場，就像我們一貫進行的補強收購一樣，無論是那些是智慧財產權目錄，或可以在數字方面幫助我們加快我們的計劃。因此，有一些事情讓我們對多年來高單位數的訂閱成長感到樂觀。

Batya Levi, UBS.

巴蒂亞‧萊維，瑞銀集團。

Just following up on the multiyear high single-digit growth in subscription revenue growth. Can we maybe talk a little bit more specifically for '25? Should we expect a slower growth in the first half of the year and maybe improvement in the back half as you lap the price increases? And maybe just cadence on artists' releases. Do you expect a more linear year similar to last year?

只是繼訂閱收入成長多年以來個位數的高成長之後。我們可以更具體地談談 '25 嗎？隨著價格上漲，我們是否應該預期上半年成長會放緩，而下半年可能會有所改善？也許只是藝術家發行的節奏。您預計今年會比去年更加線性嗎？

Batya, thanks. I think what you'll see is -- certainly, there's always going to be quarter-to-quarter changes there, but we do expect '25 to be comparable on the subscription side just given the drivers. And yes, we are lapping some of those price increases. So we will see some moderation. But again, we think the overall marketplace and the subscriber growth will continue to lift the subscription growth.

巴蒂亞，謝謝。我想你會看到的是——當然，季度與季度之間總是會發生變化，但我們確實預計 '25 在訂閱方面將具有可比性，只是考慮到驅動因素。是的，我們正在接受其中的一些價格上漲。所以我們會看到一些適度的調整。但我們再次認為，整體市場和訂戶成長將繼續推動訂閱成長。

And let me take the answer on the releases. I mean there's a lot in the hopper from Coldplay, Rose, Linkin Park, Charli XCX, (inaudible), again, I could keep going. So there's a lot that we have in the pipeline. Obviously, things can move around across quarters.

讓我來回答有關發布的問題。我的意思是，有很多來自 Coldplay、Rose、Linkin Park、Charli XCX 的音樂，（聽不清楚），我可以繼續前進。所以我們有很多事情正在醞釀。顯然，事情可能會跨季度發生變化。

But one of my big areas of focus is top of the funnel on our pipeline, whether it's deals on the distribution side or releases and making sure that there is enough volume in our pipes to allow for movements back and forth between different quarters. And obviously, then that combined with creative success on the charts, which we have had, it's -- it translates into results.

但我關注的重點領域之一是我們管道的漏斗頂部，無論是分銷方面的交易還是發布，並確保我們的管道中有足夠的容量以允許在不同季度之間來回移動。顯然，結合我們在排行榜上取得的創意成功，它會轉化為結果。

Stephen Laszczyk, Goldman Sachs.

史蒂芬·拉斯奇克，高盛。

Two, if I could. First for Robert. On newer forms of music monetization, maybe social media or short-form video, I'm curious if you see any opportunity for other categories to come into the picture over the next year or two that might be able to move the needle on emerging revenue, streaming revenue growth?

兩個，如果可以的話。首先是羅伯特.關於新形式的音樂貨幣化，也許是社交媒體或短視頻，我很好奇您是否看到其他類別在未來一兩年內出現的機會，這些機會可能能夠推動新興收入的發展、流媒體收入增長？

And then for Bryan, on free cash flow conversion, just curious if there's any puts or takes worth calling out as we think about operating or free cash flow conversion heading into next year?

然後，對於布萊恩來說，關於自由現金流轉換，只是好奇當我們考慮明年的營運或自由現金流轉換時，是否有任何看跌期權或看跌期權值得關注？

Yeah. So thanks, Stephen. So one, I'll answer this a little bit more broadly, which is music always -- music is the most widely distributed medium of any kind, more than video, more than text, more than anything.

是的。所以謝謝，史蒂芬。所以，我會更廣泛地回答這個問題，這始終是音樂——音樂是任何類型中分佈最廣泛的媒介，比影片、文字、任何東西都重要。

And because of that, it becomes a soundtrack to everyone's lives. And because of that, it deserves -- it always finds a way for next new revenue stream. So your question is 100% spot on. The question is, how (inaudible) those come and how successful they become.

正因為如此，它成為每個人生活的配樂。正因為如此，它值得——它總是能找到下一個新收入來源的方法。所以你的問題100%正確。問題是，這些（聽不清楚）是如何產生的以及它們取得了多大的成功。

I have two to three new revenue streams sketched out, but nothing that I would be prepared to speak about publicly because that would be a little bit premature. But it is exciting to actually see when you look at the engagement of people around the world with music, when you see a lot of different distribution partners that we have, when we have a lot of label partners distributing through us, lots of artists, there are many different opportunities to monetize than we do today.

我已經勾勒出兩到三個新的收入來源，但我還沒準備好公開談論任何內容，因為這有點為時過早。但當你看到世界各地的人們對音樂的參與時，當你看到我們有很多不同的發行合作夥伴時，當我們有很多唱片公司合作夥伴透過我們進行發行時，很多藝術家，與我們今天相比，有很多不同的賺錢機會。

But there's nothing that we can offer in terms of specific just yet. But your question is so spot on because it always does happen in music. And so I'm allocating some portion of my time to developing these things as well.

但目前我們還無法提供任何具體資訊。但你的問題很切中，因為它總是發生在音樂中。因此，我也分配了部分時間來發展這些東西。

And on the free cash flow conversion, we continue to see on a full year basis, 50% to 60% operating cash flow conversion there. Obviously, there is some seasonality in our year just based on the timing of deals as well as payments. But otherwise, we see it largely consistent year-to-year.

在自由現金流轉換方面，我們持續看到全年營運現金流轉換率為 50% 至 60%。顯然，根據交易和付款的時間安排，今年存在一些季節性。但除此之外，我們認為每年的情況基本上一致。

Jessica Reif Ehrlich, Bank of America Securities.

傑西卡·雷夫·埃利希，美國銀行證券公司。

I guess one follow-up and one question. On the wholesale pricing, obviously, it's very important piece of the financials. Are you looking for -- I know you're looking for price increases, but I'm not sure how you say anything about structural changes. So if you could comment on that.

我想一個後續行動和一個問題。顯然，批發定價是財務狀況中非常重要的一部分。你在尋找——我知道你在尋找價格上漲，但我不確定你如何看待結構性變化。那麼如果你能對此發表評論的話。

And then also, you've made a lot of tech investments since you've come to the company, Robert. Can you kind of -- can you talk about like kind of what you've seen from those investments and what -- will we see it in the results? And then what's left to go?

而且，自從你來到公司以來，你已經進行了大量的技術投資，羅伯特。您能談談您從這些投資中看到的情況以及我們會在結果中看到什麼嗎？然後還剩下什麼？

Sure. Sounds good. So on the first one on the wholesale prices. So if you think about it, all of the conversations in the past have translated -- have really been done through retail pricing. So you have wholesalers like us talking about retail pricing. And I just don't think that's right.

當然。聽起來不錯。所以就第一個關於批發價格。因此，如果你仔細想想，過去所有的對話都已經轉化為——實際上是透過零售定價來完成的。所以像我們這樣的批發商正在談論零售定價。我只是認為這是不對的。

We're wholesalers. Therefore, we should talk about wholesale prices. Whatever happens with retail prices is not what we control. And therefore, like that is not how we should think about the business. So I'm very much focused on the things that we control. And we learn from other industries, how they work. So if you look at the television industry, Jessica, you're obviously extremely familiar with how retail pricing works. And it's obviously similar in many other different industries.

我們是批發商。因此，我們應該談談批發價格。無論零售價格發生什麼，都不是我們所能控制的。因此，我們不應該這樣看待業務。所以我非常關注我們控制的事情。我們向其他行業學習它們的運作方式。因此，如果你看看電視行業，傑西卡，你顯然非常熟悉零售定價的運作方式。在許多其他不同的行業中，這顯然是相似的。

So that's why you see us talk about wholesale -- talking about wholesale rather than retail. And on the technology investments, the -- over the last 12 to 18 months, we focused on fixing a lot of legacy infrastructure issues that we had in the company. And we've stabilized and upgraded a lot of our core systems, which were burdened by a significant amount of technology there.

這就是為什麼你看到我們談論批發——談論批發而不是零售。在技​​術投資方面，在過去 12 到 18 個月中，我們專注於解決公司存在的許多遺留基礎設施問題。我們已經穩定並升級了許多核心系統，這些系統承受著大量技術的負擔。

So we focused a lot on things like royalty processing systems for publishing or royalty statements for clients, sync license and systems that allow us to drive more revenue and look into the black boxes and obviously, our digital supply and infrastructure. So there's a lot of foundational investments that we made. And now, as I said in my opening remarks, now the team is able to start focusing much more offensively on driving growth and efficiencies.

因此，我們非常關注諸如用於出版或為客戶提供版稅聲明的版稅處理系統、同步許可證和系統等方面，這些系統使我們能夠增加收入並調查黑匣子，顯然還有我們的數位供應和基礎設施。因此，我們進行了大量基礎投資。現在，正如我在開場白中所說，現在團隊能夠開始更積極地專注於推動成長和效率。

I would now like to turn the call back over to Robert Kyncl for closing remarks.

我現在想將電話轉回羅伯特金克爾 (Robert Kyncl) 進行結束語。

All right. So thank you, everyone. Thanks for your engagement, all of your questions, which were great. We are -- I said one thing in my opening remarks that it's really exhilarating to see the creative engines of Warner Records and Atlantic coming at the same time.

好的。謝謝大家。感謝您的參與，感謝您提出的所有問題，這些問題都很好。我們——我在開場白中說過一件事，看到華納唱片公司和大西洋唱片公司的創意引擎同時到來真是令人興奮。

We are up 10 percentage points in market share and top 200 on global chart since the time that I started at the company. And it's just great to see this continual improvement in relevance, creating hits, creating stars and having two large engine -- twin engines of growth in the biggest market in the world coming.

自我加入公司以來，我們的市佔率上升了 10 個百分點，並躋身全球前 200 名。很高興看到相關性不斷提高，創造了熱門，創造了明星，並擁有兩個大型引擎——即將到來的世界最大市場的雙重成長引擎。

That doesn't mean that we're resting on our laurels. We continue to invest, and we continue to look (inaudible), look at further efficiencies so that we can keep on delivering on what we said, which is our margin improvement and at the same time, increasing our growth into the future. So thank you so much for your support, for your attention and look forward to talking to you in the future.

這並不意味著我們固步自封。我們繼續投資，我們繼續尋求（聽不清楚），尋求進一步的效率，以便我們能夠繼續實現我們所說的目標，即我們的利潤率改善，同時增加我們未來的成長。非常感謝您的支持和關注，並期待將來與您交談。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。