WMG Q4: Recordings Down But Pub Up

Edgar Bronfman Jr.

WARNER MUSIC GROUP has announced its fourth-quarter and full-year financial results for the period ended SEPTEMBER 30th, 2008.

For the fourth quarter 2008, revenue declined 1.5% to $854 million from $867 million in the prior-year quarter, and was down 5.2% on a constant-currency basis. This performance reflects the ongoing transition in the recorded music industry characterized by a shift in consumption patterns from physical sales to new forms of digital music, the continued impact of digital piracy, and to a lesser extent, the company's efforts to manage retailer inventories. 

Recorded Music Declines While Publishing Revenues Increase

Revenue from the company's Recorded Music business declined 3.7% from the prior-year quarter to $707 million, and was down 6.9% on a constant-currency basis. The decline in constant-currency revenue primarily reflects strength in JAPAN, FRANCE and ITALY, offset by weakness in the U.S. 

Music Publishing revenue increased 13.9% from the prior-year quarter to $156 million, and was up 6.1% on a constant-currency basis. Music Publishing revenue grew 12.0% domestically and 14.9% internationally, and increased 3.3% internationally on a constant-currency basis. Digital revenue from Music Publishing grew 57.1% to $11 million, representing 7.1% of total Music Publishing revenue.

"WMG had a strong year, outperforming the industry, and sustaining revenue and OIBDA over the fiscal year, despite the challenging global recorded music and broader financial environments," said WARNER MUSIC GROUP Chairman/CEO EDGAR BRONFMAN, JR. "We remain confident in our ability to execute on our long-term goals, given that we continue to advance our strategy to lead the industry transformation by pursuing innovative business models, diversifying revenue streams and investing in A&R."

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