WMG Cuts Loss To $9 Million

For the 3rd Q of 2008, domestic revenue  for the Warner Music Group declined 6.5% while international was up 17.2%. When fluctuations in the value of the dollar were factored in, the losses from continuing operations were $9 million; an improvement from a loss of $16 million during the prior year quarter.

Revenue from recorded music was down 1% on a constant-currency basis. The decline in revenue reflected strength in Europe offset by declines in the U.S., Asia-Pacific and Latin America. Even music publishing suffered a drop of 0.6% on a
constant-currency basis.

Digital revenue grew 39.3% over the prior-year quarter and represented 22.7% of total recorded music revenue. In the US digital contributed 31.7%.  WMG reported that major sellers for the quarter were Madonna with her last record for the label, Disturbed, Plies, Luis Miguel and a long departed Frank Sinatra. (full report)

"This quarter, we continued to outperform our competitors, even in the midst of a challenging recorded music environment," said Edgar Bronfman, Jr., Warner Music Group’s Chairman and CEO. "We continue to advance our strategy to lead the recorded music industry’s transition with new business models, key partnerships and successful A&R investments. As we transform the business to position it for future growth in an evolving industry, we remain focused on driving profitability and cash flow, while prudently managing capital and costs."