WMG Loss Widens, Cancels Dividends
Warner Music Group representatives had a difficult time sounding optimistic this morning as the reported quarterly earnings:
- A loss of $28 million or $.23 per diluted share increased from a loss of $.19 in the prior year quarter
- "In an effort to increase its financial flexibility" WMG has suspended its previous policy of paying a regular quarterly dividend.
- Digital revenue was $164 million, or 21% of total revenue, up 16% sequentially from $141 million in the first quarter of fiscal 2008 and up 48% from $111 million in the prior-year quarter.
- Total revenue of $800 million marked a decline of nearly 4% on a constant-currency basis
MORE: Silicon Alley Insiders asks if WMG will have trouble servicing its large debt, WMG press release.