Warner Music Group Revenues Slip
August 7, 2007 at 5:47 AM (PT)
WARNER MUSIC GROUP announced its third-quarter financial results for the period ended JUNE 30, 2007.
Revenue slipped 2% to $804 million from $822 million in the same period last year, or 5% on a constant-currency basis. Domestic revenue was down 1% while international revenue declined 4%, or 9% on a constant-currency basis.
Operating income for the quarter rose to $45 million from $28 million in the prior-year quarter and operating margin was up 2.2 percentage points to 5.6%. Adjusted to exclude Non-Recurring Items, operating income for the quarter rose 39% to $39 million and operating margin was up 1.5 percentage points to 4.9%.
"We are transforming WARNER MUSIC GROUP to a music-based content company with a more comprehensive approach to participating in artist revenue streams to drive our long-term success," said Chairman/CEO EDGAR BRONFMAN JR. "Despite a challenging industry environment, we achieved several milestones this quarter which validate our A&R strategy. According to sales data released this quarter, our global market share for calendar year 2006 improved, moving us up to the third-largest global recorded music company. We also reached a WMG 10-year record for U.S. album share for both the quarter and first half of 2007."