Label group continues to notch gains in digital revenue
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).