WMG Reports Higher Profits On Lower Sales
Despite declining CD sales and an increasingly dismal economy, WMG managed to meet analysts' expectations and hold its own.
2008 fiscal year revenue grew 3% to $3,491M, and declined 2% on a constant-currency basis. 34 revenue totaled $854M a decrease of
1% from the prior-year quarter or 5% on a constant-currency basis.- 2008 digital revenue rose 39% to $639M or 18% of total. Q4 digital revenue was $167M or 20% of total revenue up from $166M in the third quarter of fiscal '08 and up 28% from the prior-year quarter. Full-year 2008 digital revenue rose 39% to $639M or 18% of total revenue.
- Operating income from continuing operations declined 20% to $66 million...
in the quarter compared to $83 million in the prior-year quarter. Prior quarters had benefited from a $17M legal settlement and been dragged down by whopping $9M in expenses during the failed aquisition of EMI.
- Operating income before depreciation and amortization from continuing operations fell 8%. (more)
WMG's saw revenue fall 3.7% with weakness in the U.S. offset by sales in Japan, France and Italy. Major sellers included Metallica, Kid Rock and Mariya Takeuchi.
