WMG Offers Mixed Financial Report, Digital Sales Up
In a report to investors this morning, Warner Music Group showed a loss for the quarter ending March 31st of $25 million or 17 cents a share. That's down significantly from the $68 million or 45 cents a share loss in the same quarter last year. Overall revenue fell 1.3% to $662 million with rising digital sales contributing to WMG's improving numbers. Other highlights:
- Digital sales reached $199 million or 30% of total revenue. That's an up 8% from
the previous quarter and up 15% from $173 million in the prior-year quarter. - Total revenue of $662 million represented a decline of 1% from the prior-year quarter.
- Operating income grew 60% to $24 million compared to $15 million in the prior-year quarter.
Wall Street analysts may not be overjoyed by WMG's performance. They had forecast a profit of $.30 on
revenue of $663.3 million according to Thomson Reuters.
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they are cutting costs based on those numbers- if the operating income great 60% year-to-year while revenue dropped.
you have to think… at this point, that digital sales are going to continue to rise, while the cost cuts will be permanent.