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Warner Music Group’s revenues and net losses both narrowed in the company’s third fiscal quarter report, issued Thursday.
The music firm’s revenue for the quarter ended June 30 dropped 5% to $654 million, from $688 million the same quarter last year. But net losses also fell 30%, to $32 million from $46 million in last year’s third quarter. Operating income plunged 30% to $7 million, from $10 million in the same quarter last year. WMG continued to trumpet gains in digital revenue, which rose 13% to $230 million, up from $203 million a year ago. Digital represented 35% of the company’s total revenue for the quarter. Company’s recorded music revenue slid 5%, to $518 million from $547 million in last year’s quarter. The company’s major sellers included Linkin Park, Jason Mraz, fun., and, on the international side, Germany’s Die Toten Hosen. Revenue for publisher Warner/Chappell fell 4% to $140 million, versus $146 million in the same 2011 quarter. Synch revenue grew 3.3% and digital revenue climbed 6.7%, but performance revenue slid 8.5%, in part due to industry-wide reduction in U.S. radio license fees. Warner/Chappell bought Miramax’s music holding in July (Daily Variety, Aug. 1).
