Thursday's Music 2.0 Briefing: Credit Crunch Hurts EMI And WMG, NIN Remix Back, Big Net Radio In Trouble & Much More
Friday's Music 2.0 Briefing: EMI Selling Stake, Facebook Dims Beacon, Vinyl Takes A Hit & Much More

WMG Reports Thinner Profits Plus A 360 Sinatra Deal

Wmg WMG's net profits fell to $5 million (3 cents a share) in the fourth fiscal quarter down from $12 million (8 cents a share) a year ago. Revenue rose 2% to $869 million from a year ago but declined 2% after factoring in the impact of the weak dollar. The label's digital music sales were up 25% to $130 million during the quarter but did not make up for the rapid decline in CD sales. (annual reports and SEC filings, press release)

WMG stock is down nearly 70% since the start of the year as investors reacted negatively to larger than expected drops in CD sales.  The stock remained flat in early trading Tuesday at about $7.15. (updated stock price here)

Sinatra Yestderday, WMG announced that it had entered into a deal to manage and exploit the assets of the Frank Sinatra estate and family including music and film. Rumor has daughter Nancy Sinatra cutting a jazz flavored album that may be released by the new joint venture.