Warner Music Group Reports Q2 Results
May 6, 2010 at 5:03 AM (PT)
WARNER MUSIC GROUP has announced its second-quarter financial results for the period ended MARCH 31st, 2010.
Total revenue of $662 million declined 1% from the prior-year quarter, and was down 6% on a constant-currency basis. Digital revenue was $199 million, or 30% of total revenue, up 8% sequentially from the first quarter of fiscal 2010, and up 15% from $173 million in the prior-year quarter. On a constant-currency basis, digital revenue grew 11% sequentially and was up 12% from the prior-year quarter.
"This quarter provided another example of our ability to generate stable results, even in the face of continued industry-wide pressures and a limited release schedule -- delivering growing OIBDA with only moderate revenue declines," said Chairman/CEO EDGAR BRONFMAN, JR. "We remain on track to achieve our long-term financial and strategic goals, including driving free cash flow, developing innovative digital solutions, enhancing the value and growth of WARNER/CHAPPELL, investing in artist development and expanding our artist services business."
"We continue to expect our fiscal year 2010 release schedule to be fourth-quarter weighted," added EVP/CFO STEVEN MACRI. "One year after our MAY 2009 refinancing, our balance sheet continues to strengthen, highlighting the attractive fundamental cash characteristics of our business."
Revenue from the company's Recorded Music business declined 0.9% from the prioryear
quarter to $534 million, and fell 5.5% on a constant-currency basis. The decline in
constant-currency revenue reflected weakness in the U.S., ASIA and most of EUROPE,
partially offset by strength in the U.K. Both local and international artists fueled growth in Recorded Music revenue in the U.K.
Music Publishing revenue declined 1.5% from the prior-year quarter to $134 million, and was down 6.3% on a constant-currency basis. International Music Publishing revenue grew 3.8%, but fell 4.7% on a constant-currency basis, while domestic Music Publishing revenue declined 8.6% from the prior-year quarter to $53 million.