WMG Q2 Results

WMG Q2 DOWN, DIGITAL UP: Warner Music’s combined Q2 revenues for the period ending March 31 were off 8% to $628 million, from $684 million a year ago. Digital revenue rose 7%, from $220 million to $235 million. The company blamed the results on its “light release schedule” and “continued physical revenue declines.” Revenue growth in Japan, Asia, Italy and Canada was offset by weakness in the U.S. and most of Europe. Digital revenue represented 37.4% of total revenue for the quarter, compared to 32.2% in the prior-year quarter. The recorded music division's revenues fell 9% from $552 million to $503 million, while digital revenues rose 8% from $205 million to $222 million. Recorded music digital revenue represented 44.1% of total revenue, the company's largest percentage to date, compared to 37.1% in the prior-year quarter. Domestic recorded music digital revenue was $123 million, or 58.3% of the total, the company’s largest percentage to date, compared to 48% in the prior-year quarter. Music publishing was off 7%, with revenues down to $128 million from $137 million a year ago. Digital revenues were also down, dropping 18% from $17 million to $14 million. Commented CEO Stephen Cooper. "We remain optimistic about the company's performance over the course of the fiscal year as we continue to execute on our long-term strategy." (5/15a)