Company's total revenue declined 16% from 2009
Warner Music Group on Thursday announced deepening losses for its third fiscal quarter ended June 30.WMG showed an operating loss of $1 million compared to operating income of $25 million in the prior-year quarter. The loss included $9 million in severance charges ($7 million in recorded music, $2 million in corporate), compared to $3 million a year earlier. Company’s total revenue declined 16% from the same quarter the previous year (and was down 15% on a constant-currency basis). Recorded music revenue declined 7.9% to $519 million (from $632 million a year earlier). U.S. recorded music revenue fell to $247 million from $284 million quarter-to-quarter. WMG said in a statement: “The company’s recorded music business experienced strong growth in international digital download revenue. This performance was more than offset by a light release schedule and contracting demand for physical product. Revenue declines were also attributable to lower revenue from tours promoted by the company’s European concert promotion business for the quarter. Major sellers in the quarter included B.o.B, Michael Buble, Jason Derulo, Plan B and the ‘Eclipse’ soundtrack album.” Music publishing revenue dropped 6.1% from the prior-year quarter to $139 million (off 4.1% on a constant-currency basis). Domestic publishing was flat while international publishing plummeted 9.6%. Publishing income dropped to $1 million from $11 million in the previous year’s quarter. Digital revenue of $179 million (representing 27% of total revenue) inched up 2% quarter-to-quarter. Operating income declined 29% to $64 million (vs. $90 million in the previous-year quarter). The NYSE-traded stock showed a loss of 37¢ per share, compared to a 25¢ loss the same quarter last year.
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