WMG Reports Q1 Financials
February 5, 2009 at 6:16 AM (PT)
WARNER MUSIC GROUP has released its first-quarter financial results for the period ended DECEMBER 31, 2008.
"Though facing difficult economic conditions and tough prior-year comparisons, we executed on our strategy and remain confident in achieving our long-term goals," said Chairman/CEO EDGAR BRONFMAN, JR. "We continue to develop new music business solutions and maintain our digital leadership position, while managing costs, gaining share and delivering strong returns on A&R investments."
For Q1 2009, revenue declined 11.2% to $878 million from $989 million in the prior-year quarter, and was down 6.3% on a constant-currency basis. This performance reflected the ongoing transition in the recorded music industry characterized by a shift in consumption patterns from physical sales to new forms of digital music as well as the impact of the turbulent global economy on retailers.
Revenue from the company's Recorded Music business declined 11.9% from the prior-year quarter to $749 million, and was down 7.4% on a constant-currency basis.
Recorded Music digital revenue of $156 million grew 18.2% over the prior-year quarter, or 20.9% on a constant-currency basis, and represented 20.8% of total Recorded Music revenue.