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Move to digital hits Warner Music | Move to digital hits Warner Music |
(about 17 hours later) | |
Warner Music Group, the world's fourth biggest record firm, has seen its losses widen as more people downloaded music rather than bought its CDs. | |
In the third quarter ending in June the company lost $17m (£8.4m), against $14m at the same time a year ago. | |
Revenue fell 2% year-on-year to $804m from $822m, after what WMG boss Edgar Bronfman said had been a "challenging quarter" for the music industry. | Revenue fell 2% year-on-year to $804m from $822m, after what WMG boss Edgar Bronfman said had been a "challenging quarter" for the music industry. |
Shares in WMG fell 68 cents, more than 6%, to $10.35 in New York trading. | Shares in WMG fell 68 cents, more than 6%, to $10.35 in New York trading. |
Warner, whose artists include Madonna, REM and P Diddy, is to restructure its recorded music business to free up cash for areas such as digital distribution. | Warner, whose artists include Madonna, REM and P Diddy, is to restructure its recorded music business to free up cash for areas such as digital distribution. |
Like other firms, it has suffered as consumers bought fewer CDs. | Like other firms, it has suffered as consumers bought fewer CDs. |
EMI withdrawal | EMI withdrawal |
The New York-based company said digital revenue increased 29% year-on-year to $119m, or 15% of total revenue, in the quarter. | The New York-based company said digital revenue increased 29% year-on-year to $119m, or 15% of total revenue, in the quarter. |
Revenue from recorded music overall fell 4% to $653m, as sales fell in the UK, France and Canada. But stronger sales were experienced in Japan and Spain. | Revenue from recorded music overall fell 4% to $653m, as sales fell in the UK, France and Canada. But stronger sales were experienced in Japan and Spain. |
Albums by Linkin Park, Michael Buble, T.I., The Traveling Wilburys and The White Stripes were among Warner's biggest sellers during the quarter. | Albums by Linkin Park, Michael Buble, T.I., The Traveling Wilburys and The White Stripes were among Warner's biggest sellers during the quarter. |
Mr Bronfman said the firm had backed away from a bidding war for Britain's EMI Group because the market had created expectations for a price that "we couldn't justify". | Mr Bronfman said the firm had backed away from a bidding war for Britain's EMI Group because the market had created expectations for a price that "we couldn't justify". |
Private equity firm Terra Firma Capital Partners recently bought EMI for $4.9bn. | Private equity firm Terra Firma Capital Partners recently bought EMI for $4.9bn. |
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