Warner Music Losses Continue To Grow As Drop In CD Sales Exceeds Digital Growth

Warner Music Group continues to sing a sad tune when it comes to its financial performance. It reported today that it had  a net loss of $103M in the quarter that ended in September, 124% bigger than its loss in the same period last year, on revenues of $707M, down 6%. The financial report is mostly for bondholders; Russian-born billionaire Len Blavatnik’s Access Industries bought the company in July for $3.3B. Still, it’s a dreary filing for the company, whose roster of hitmakers includes Bruno Mars, Cee Lo Green, Red Hot Chili Peppers, and Jill Scott. Warner says that its recorded music revenues fell 8% to $571M. Although sales from digital distribution were up 6% to $194M, that was “more than offset by contracting demand” for CDs. Meanwhile, revenues at the music publishing operation fell 1% to $141M. Warner says that the quarter’s disappointing results were due to “a light release schedule”; weak sales in the U.S., Japan, and most of Europe; and rising interest payments on the debt Access took on to buy the music company. (more…)

This article was printed from https://deadline.com/2011/12/warner-music-losses-continue-to-grow-as-drop-in-cd-sales-exceeds-digital-growth-202646/