With its pending sale to Access Industries looming, WMG reported Q2 results this morning; and the numbers, while not unexpected, showed that the music group's downward slide is far from over. The company reported a wider second-quarter net loss of $38 million or 25 cents per share versus $25 million or 17 cents per share a year ago.
That beat analysts predictions slightly. 6 analysts polled by Thomson Reuters expected a loss per share of 28 cents for the quarter. Total revenue for Q2 grew 2% to $682 million from $666 million in the prior-year quarter, up 1.6% on a constant-currency basis.
Digital revenue was $220 million, or 32% of total worldwide revenue (almost 50% in the U.S.) , up 9% from $202 million in the prior-year quarter, and up 8% on a constant-currency basis. Digital revenue grew 18% sequentially from the first quarter of fiscal 2011, or 17% on a constant-currency basis.
But CEO Edgar Bronfman, Jr. offered some bright spots: “We are excited to see our digital revenue approach the 50% milestone for U.S. Recorded Music and to see 60% of our active global artist roster signed to expanded-rights deals.”
