WMG Reports Loss & $18M Failed Diversification Attempt

In an earnings call this morning, Warner Music Group shared its latest financial data.  With losses of $.11 cents per share and an $18 million write off for a failed attempt at diversification, the company’s way forward seems unclear.  But it could have been much worse….In summar, WMG reported:

• 
  Total revenue of $989 million increased from $928 million in the prior-year quarter, but on on a constant-currency basis that’s only 1%
• Digital revenue was $141 million or 14% of total revenue up 9% from in the fourth quarter of fiscal 2007 and up 41% in the prior-year quarter
• Operating income decreased 45% to $44 million from $80 million.
• But that included an $18 million charge related an ill fated purchase of concert promoter Bulldog Entertainment. Warner has already "exited" the deal.
• Operating income before depreciation and amortization fell 8% to $129 million
• Net losses declined $.01 from the prior year quarter to $.11 per diluted share which includes the previously noted $18 million for Bulldog