Earnings: WMG Revs Up 2 Percent; Loss Deepens; Digital Up 47.6 Percent; Dividend Cancelled
This story was written by Joseph Weisenthal.
Another tough quarter for Warner Music Group (NYSE: WMG), which has suspended its dividend in the name of "financial flexibility". The label announced quarterly revenue of $800 million, up 2 percent from $784 million a year ago, though on a constant currency basis, it would have decline. Losses grew to $34 million ($.23 per share) from $27 million ($.19 per share) on higher costs. Analysts had been looking for a loss of $.12 per share. Some bright spots: the music business declined by just .6 percent from the prior year. Sure it was helped by currency and strength outside of the US, but it isn't completely falling off a cliff. And digital revenue was up 47.6 percent to $155 million, representing 23.8 percent of total music revs. What's more, digital growth accelerated from last quarter, when it was up just 41 percent. Music publishing also continues to hold up, growing 8.4 percent to $155 million.
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By Joseph Weisenthal