Warner Music Group Reports Results For Q4 And Full Year Ended September 30th

Q4 And YTD Financials

WARNER MUSIC GROUP has released its fourth-quarter and full-year financial results for the period ended SEPTEMBER 30, 2012.

"We had a very productive year. WARNER MUSIC GROUP performed well and is positioned to capitalize on the industry’s more stable recent trends," said CEO STEPHEN COOPER. "Among our important achievements, we grew global digital and physical Recorded Music sales on an aggregate basis, for the quarter and the fiscal year."

Fourth-Quarter Results

For the quarter, revenue grew 1.8%, and 7.3% in constant-currency, as physical Recorded Music revenue and total digital revenue both grew, helped by a more robust release schedule. Constant-currency revenue growth in JAPAN, GERMANY, ITALY and the U.S. was partially offset by weakness in FRANCE related to the company’s concert promotion business, and declines in LATIN AMERICA, SPAIN and the U.K.

Digital revenue grew 14.8%, or 18.1% in constant-currency, and digital revenue represented 33.0% of total revenue for the quarter, compared to 29.2% in the prior-year quarter.  The growth in digital revenue reflects growth in subscription/streaming services and global downloads.

Full-Year Results

For the fiscal year, growth in digital revenue more than offset physical revenue declines in the company’s Recorded Music business. However, this net growth was more than offset by declines in Artist Services and Expanded Rights revenue, Recording Music licensing revenue and Music Publishing revenue.

Digital revenue grew 12.8%, or 14.1% in constant-currency, and represented 33.3% of total revenue, compared to 28.6% in the prior year.

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