WMG Quarterly Losses Widen To $68M
Revenue fell 17% to $668 million. A poll of seven analysts by Thomson Reuters had predicted a loss of 25 cents a share on revenue of $739 million. Blaming its own release cycle, WMG reported
that operating income from continuing operations declined 46% to $15 million compared to $28 million in the prior-year quarter. Overall operating income before depreciation and amortization fell 17% to $80 million from $96 million in the prior-year quarter.
Even digital sales, which should have been a bright spot for WMG, showed signs of slowing. Digital revenue of $173 million now represent 26% of total revenue. That's up just 1% from the first quarter of fiscal '09 and up only 6% from the prior-year quarter. On a constant-currency basis, digital revenue grew 11% from the prior-year quarter and 3% sequentially.