WMG Q1 Revs Up, Income Down
February 6, 2008 at 8:33 AM (PT)
WARNER MUSIC GROUP CORP. announced its first-quarter 2008 financial results for the period ended DECEMBER 31st, 2007.
"2007 was a challenging year for the recorded music industry. Operationally, the WMG team had some notable achievements this year -- our highest U.S. album share in a decade, the top two labels for U.S. market share, the greatest U.S. digital album share advantage over physical album share for any major music company and more stable music publishing performance -- among many others. We recognize that there remains much to be accomplished and are working towards translating these gains into enhanced value for shareholders," said WARNER MUSIC GROUP Chairman/CEO EDGAR BRONFMAN, JR.
- Total revenue of $989 million increased 7% from $928 million in the prior-year quarter, and grew 1% on a constant-currency basis.
- Digital revenue was $141 million, or 14% of total revenue, up 9% sequentially from $130 million in the fourth quarter of fiscal 2007 and up 41% from $100 million in the prior-year quarter.
- Operating income decreased 45% to $44 million from $80 million in the prior-year quarter. Operating income in the first quarter includes an $18 million impairment charge related to BULLDOG ENTERTAINMENT, an entertainment services company purchased in MAY 2007, a business they have
- Operating income before depreciation and amortization (OIBDA) fell 8% to $129 million from $140 million in the prior-year quarter.
- Net loss of $0.11 per diluted share, which reflects the previously noted $18 million or $0.12 per share impairment charge, declined from net income of $0.12 per diluted share in the prior-year quarter.
WMG Stays Green
WARNER MUSIC GROUP also announced an extension of its environmental program to include a "zero landfill waste" and "carbon-neutral" post-GRAMMY event. The WMG event will be held immediately following the 50th ANNUAL GRAMMY AWARDS in LOS ANGELES on SUNDAY, FEBRUARY 10th.
CALIFORNIA Gov. ARNOLD SCHWARZENEGGER said, "CALIFORNIA has consistently led the nation in environmental protection and we have learned that we can help our environment while at the same time protecting the economy and our lifestyles. I am very pleased that WARNER MUSIC GROUP, working with city, state and local leaders, has taken this issue to heart and is turning consumption into conservation on the important pop culture stage at this 'zero waste' event."
WMG Chairman/CEO LYOR COHEN said, "On an evening when we have so many industry luminaries celebrating our artists' achievements over the past year, we felt it was equally important to turn the spotlight on the environment and remind others in the industry how they, too, can help promote a more environmentally friendly music business. I also want to thank the CITY OF LOS ANGELES and all our sponsors who have helped underwrite the event and share our vision for environmental awareness."