Warner Music posts better-than-expected results; digital sales grew 20% to account for 31% of sales

Apple iTunes“Warner Music Group posted better-than-expected results on Thursday,” Yinka Adegoke reports for Reuters. “Net profit for the fiscal first quarter came in at $23 million, or 15 cents a share, compared with loss of $16 million, or 11 cents, a year earlier.”

“Warner benefited from a gain of 24 cents a share on the sale of its stake in Front Line Management to Ticketmaster Entertainment,” Adegoke reports. “Without the gain Warner would have posted a loss of 9 cents a share, compared with analysts’ average forecast of loss of 14 cents a share, according to Reuters Estimates.”

“Revenue dropped 11 percent to $878 million even though digital sales on services such as Apple Inc’s iTunes Store and mobile phones rose 20 percent to $171 million,” Adegoke reports. “Digital sales, while still growing, have slowed from recent quarters and now accounts for 31 percent of total sales.”

Adegoke reports, “Warner said domestic revenue declined 18.8 percent.”

More details in the full article here.

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