WMG Earnings Down But Still Profitable

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  Total revenue of $928 million for the first quarter of fiscal 2007 decreased 11% from the prior-year quarter or 14% on a constant-currency basis.
• Digital revenue was $100 million, or 11% of total revenue in the quarter, up 45% from $69 million in the prior-year quarter and down 4% sequentially from $104 million in the fourth quarter of fiscal 2006.
• Operating income declined 44% to $80 million in the quarter compared to $144 million in the prior year.
• Operating income before depreciation and amortization declined 31% to $140 million from $202 million in the prior year.
• Net income was $18 million or $.12 per share down from $.46 per diluted share in the prior-year quarter. (press release and full report)

Wall Street was less than impressed. As of 10:30 Thursday morning the stock had dropped another 4% to $21.58 off a 52 week high of $31.  (click here for the latest stock price)