WMG Reports Wider Losses On Declining Revenue

Blaming a weak release schedule, Warner Music Group reported a widening loss of 16% in Q3 compared to the prior year quarter on total revenue of $652 million. This is the six consecutive quarterly decline for the major label group, but beat many analysts expectations. Other highlights of this morning's report:

• Digital revenue was $179 million, 27% of total revenue but up just 2% from $175 million in the prior year quarter and down 10% sequentially from the second quarter of fiscal 2010.
• Operating loss was $1 million compared to operating income of $25 million in the prior-year quarter.
• Operating income before depreciation and amortization (OIBDA) was down 29% to $64 million from $90 million in the prior-year quarter.

“Despite our anticipated very light release schedule, this quarter we grew digital revenue to 41% of our U.S. Recorded Music revenue, maintained U.S. album market share at 21%, continued to sign and develop some of the industry's most promising talent to expanded-rights agreements and invested further in the artist services business – all consistent with our strategy to build a diversified music company positioned for long-term success," said WMG CEO Edgar Bronfman Jr.