WMG Q2 Loss Widens, Drops Dividend
May 8, 2008 at 6:08 AM (PT)
WARNER MUSIC GROUP has announced its second-quarter 2008 financial results for the period ended MARCH 31st, 2008 and in an effort to increase its financial flexibility has suspended its previous policy of paying a regular quarterly dividend.
Total revenue of $800 million increased 2% from $784 million in the prior-year quarter, and declined nearly 4% on a constant-currency basis.
Digital revenue was $164 million, or 21% of total revenue, up 16% sequentially from $141 million in the first quarter of fiscal 2008 and up 48% from $111 million in the prior-year quarter.
Operating income from continuing operations increased 47% to $28 million from $19 million in the prior-year quarter. The prior-year quarter included $16 million of restructuring-related charges in connection with the company's fiscal 2007 realignment initiatives.
Operating income before depreciation and amortization (OIBDA) from continuing operations grew 20% to $96 million from $80 million in the prior-year quarter, which included the $16 million in restructuring-related charges. Loss from continuing operations of $0.23 per diluted share increased from a loss of $0.19 per diluted share in the prior-year quarter.
"WARNER MUSIC continues to outperform the industry and gain share in key markets, which is a testament to our commitment to investing in A&R and leading the recorded music industry's transition through innovation and creativity," said WMG Chairman/CEO EDGAR BRONFMAN, JR. "While an uncertain economic backdrop and evolving recorded music industry make a conservative approach to our balance sheet a prudent strategy, we remain excited about the long-term prospects for our business. In particular, we are gratified by WMG's excellent digital results this quarter, which highlight our leadership position in driving this critical segment of the music business."