WMG Q2 Overall Revenue Down While Digital Grows
May 8, 2007 at 5:46 AM (PT)
WARNER MUSIC GROUP CORP. has released 2nd Quarter financials for the period ended MARCH 31. Some of the highlights include:
* Digital revenue reaches 14% of total revenue, growing 11% sequentially.
* Total revenue of $784 million for the second quarter of fiscal 2007 decreased 2% from the prior-year quarter, or 5% on a constant-currency basis.
* Digital revenue increased to $111 million, or 14% of total revenue in the quarter, up 23% from $90 million in the prior-year quarter and up 11% sequentially from $100 million in the first quarter of fiscal 2007.
* Operating income declined to $19 million in the quarter compared to $45 million in the prior-year quarter. Adjusted to exclude $16 million of non-recurring items related to the company’s realignment initiatives. Operating income for the quarter declined 22% to $35 million.
* Operating income before depreciation and amortization declined to $80 million from $104 million in the prior-year quarter. Adjusted to exclude Non-Recurring Items, OIBDA for the quarter declined 8% to $96 million.
* Net loss of 19 cents per diluted share in the quarter increased from a net loss of 5 cents per diluted share in the prior-year quarter. Adjusted to exclude Non-Recurring Items, net loss per diluted share in the quarter was 10 cents.
We are in the midst of transforming Warner Music Group to a music-based content company.
"We are in the midst of transforming WARNER MUSIC GROUP to a music-based content company," said WMG Chairman/CEO EDGAR BRONFMAN JR. "Despite tough comparisons to last year and a challenging industry environment, we achieved some important successes this quarter. We gained album share in the largest global music market, the U.S., achieved double-digit revenue growth in the second largest global music market, JAPAN, sustained our digital leadership position, and concluded new partnerships. Perhaps most significantly, we advanced our initiatives to maximize the value of our content and to diversify our revenue streams. Essential to the on-going success of those business initiatives, we are in the process of realigning the organization to more effectively deploy our resources to growth areas, such as digital and video distribution. By helping us manage physical costs, while redeploying our resources and ongoing investments towards new business initiatives, this realignment will ensure a successful transformation in an evolving music industry, not just for this year or the next, but for years to come."