WMG Reports Total Revenue Down; Digital Up
February 8, 2007 at 5:45 AM (PT)
WARNER MUSIC GROUP announced its first-quarter financial results for the period ended DECEMBER 31, 2006.
The report's highlights include:
- Total revenue of $928 million for the first quarter of fiscal 2007 decreased 11% from the prior-year quarter, or 14% on a constant-currency basis.
- Digital revenue was $100 million, or 11% of total revenue in the quarter, up 45% from $69 million in the prior-year quarter and down 4% sequentially from $104 million in the fourth quarter of fiscal 2006.
- Operating income declined 44% to $80 million in the quarter compared to $144 million in the prior-year quarter.
- Operating income before depreciation and amortization (OIBDA) declined 31% to $140 million from $202 million in the prior-year quarter.
- Net income of 12 cents per diluted share in the quarter was down from 46 cents per diluted share in the prior-year quarter.
"Last year’s successes provide an excellent foundation on which to build. As expected, we faced unusually difficult year-over-year comparisons this quarter, which do not reflect our prospects for the fiscal year," said WMG Chairman/CEO EDGAR BRONFMAN JR. "We remain the leader in the music industry’s digital transformation, having concluded a series of key partnership agreements and having reached the $100 million threshold in digital revenue for two consecutive quarters. Even in the face of a challenging market backdrop, we continue to deliver value to our shareholders and aggressively seek new opportunities for growth."
Financial details for the first quarter of fiscal 2007 can be found in the company’s current Form 10-Q, filed today with the SECURITIES & EXCHANGE COMMISSION. More info can be found at www.wmg.com.