Thursday, February 12, 2015

WMG Posts Loss of $42M

Warner Music Group Corp. today posted a wider loss mostly on higher tax expenses in some countries for the quarter ended in December, while currency impacts took a bite out of the company's holiday sales growth, according to

Warner, the smallest of the world's three largest music companies--after Vivendi SA's Universal Music Group and Sony Corp.'s Sony Music Entertainment--has been moving faster than its competitors to strike deals to expand its online distribution.

Chief Executive Stephen Cooper said the company was off to a strong start for its business year ending in September, citing some strong new releases during the holiday season. He also noted the company's investments in new opportunities "means that we are well-positioned to build on this success as the industry evolves."

For the period ended Dec. 31, Warner Music reported a loss of $42 million, compared with a year-earlier loss of $37 million. Excluding acquisition-related impacts, expenses related to its cost-savings efforts and other items, operating earnings fell to $37 million from $42 million. Revenue increased 1.7% to $829 million. Excluding currency impacts, sales rose 6.6%.

Digital revenue grew 14% excluding currency impacts, while recorded music sales improved 8% on that basis.

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