Earnings per Share

3 Months Ended

Dec. 31, 2024

The Company utilizes the two-class method to report earnings per share. Basic earnings per share is computed by dividing net income available to each class of stock, less earnings available to participating securities, divided by the weighted average number of outstanding common shares for each class of stock. Diluted earnings per share is computed by dividing net income available to each class of stock, less earnings available to participating securities, divided by the weighted average number of outstanding common shares, plus dilutive potential common shares, which is calculated using the treasury-stock method. The potentially dilutive common shares did not have a dilutive effect on the Company’s EPS calculation for the three months ended December 31, 2024 and 2023, respectively.

The following table sets forth the calculation of basic and diluted net income per common share under the two-class method for the three months ended December 31, 2024 and 2023 (in millions, except share amounts, which are reflected in thousands, and per share data):


	Three Months Ended December 31,
	2024				2023
	Class A		Class B		Class A		Class B
Basic and Diluted EPS:
Numerator
Net income attributable to Warner Music Group Corp.	$	67	$	169	$	44	$	115
Less: Net income attributable to participating securities (a)	(3)		—		(2)		—
Net income attributable to common stockholders	$	64	$	169	$	42	$	115
Denominator
Weighted average shares outstanding	143,053		375,380		138,972		377,490
Basic and Diluted EPS	$	0.45	$	0.45	$	0.30	$	0.30

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(a)Participating securities include unvested restricted stock units, which include the right to receive non-forfeitable dividend equivalents.