Warner Music Revenues Down 14% From Q1 2010
February 8, 2011 at 4:11 AM (PT)
WARNER MUSIC GROUP has released its first quarter financial results for the period ended DECEMBER 31st, 2010. For the quarter, revenue declined 14.1% to $789 million from $918 million in the prior-year quarter, and was down 11.9% on a constant-currency basis. The decline in revenue "reflected the continued transition from physical to digital in the recorded music industry as well as a competitive holiday release schedule for the industry," said WMG.
"While industry pressures and a highly competitive release schedule limited our results in the first quarter, we're confident that our disciplined A&R investments, successful revenue diversification and innovative digital strategies will drive WMG's long-term growth," said Chairman/CEO EDGAR BRONFMAN, JR.
"Our ongoing cost-management efforts enabled us to support our OIBDA margins in the quarter, despite revenue declines," added EVP/CFO.
Domestic revenue declined 10.3%, while international revenue fell 16.4%, or 13.1% on a constant-currency basis. Revenue growth in certain ASIA-PACIFIC countries was offset by weakness in the rest of the world. The overall increase in digital revenue was more than offset by contracting demand for physical product.
Digital revenue of $187 million grew 1.6% over the prior-year quarter on both an as-reported and constant-currency basis. Digital revenue was down 5.1% sequentially from the fourth quarter of fiscal 2010, or 7.0% on a constant-currency basis, and represented 23.7% of total revenue for the quarter. The growth in digital revenue over the prior-year quarter primarily reflected strength in global digital downloads and streaming, partially offset by continued declines in domestic mobile revenue.